Stockchase Opinions

Larry Berman CFA, CMT, CTA Global X Lithium ETF LIT-N WATCH Oct 30, 2017

There is froth in the sector and he would wait for a 20% minimum pullback before nibbling at these companies. We should get a correction and you should buy the correction.

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COMMENT

Technology. He loves clean tech and innovations. He loves the lithium sulphur battery idea. Can you invest in this for the long run? Yes. The longer your investment horizon the more volatility you have to endure. You have to be able to handle the ride if you invest for 5 years. You should accumulate during the down times. There is a Lithium ETF: LIT-N.

COMMENT

Lithium Batteries. There are a lot of interesting investments in these areas, but he would like a broader way to get exposure to these areas. This one is in US$, however.

BUY

Lithium. This was a focus in his recent road show. It has been out of favour for a number of years. The long term trend is down, but then broken. It has a higher low and a higher high. Buy bottoms in the sector.

BUY

(Market Call Minute.) This has had a pretty good run. The greater picture on electronic vehicles is that it is going to create a lot of demand for lithium. This would be a positive place to invest.

COMMENT

Broad lithium play with LIT. Battery technology is the future. You want to buy on dips. For copper, COPX is a basket of copper focused fund. For broader precious metals, GDX would be his preference.

COMMENT
Focuses on lithium producers, miners and battery makers. Lithium is a big part of the battery world but there are other tech coming online. Hard to say if this will be the tech of tomorrow, kind of like the hype around hydrogen.
BUY
Alternative energy space. He'd pick lithium as a material, and lithium producers, as timely. Whether you own the LIT ETF basket, or some of the larger producers, the demand is going to be solid for quite some time.
BUY
Prefers the lithium miners or a lithium ETF to Tesla, which has high expectations and a lot of ups and downs. TSLA is facing increased competition, as all the major car manufacturers are planning to get into the space in a meaningful way.
BUY
LIT is 25% of her global strategy. She's a strong believer in EVs. You can own Ford, GM or Rivian, but LIT offers exposure to many players globally like Panasonic and Samsung.