Hey There Income Hunters,
This is a great time of year to pick up some of your favorite stocks at a discount.
At the end of a year when the markets were kind to investors there is a need to offset trading gains with trading losses.
During a year of 22%+ gains, tax loss selling can be significant and it usually lasts into mid-December, so this week and next can see some exaggerated moves.
What may make this year even more significant than usual is the increase in retail trading … Short-term trading (under one-year hold) is taxed as ordinary income and there is a more urgent need to take some losses against those gains.
These positions are mostly reestablished in the new year, so this year we should have even more pent-up buying to start the year than usual.
Today, I’ll share a stock that is not only in a super-hot sector but is a great company and poised for a big gain in the months ahead.
Let’s take a look …
The Lithium Story
Lithium-ion batteries power electric vehicles, and over the next 10-years the worldwide Lithium market will grow 500% to 1,000%.
Now, Lithium is not in short supply. However, as you can see from the graph below, the demand is so great that supply will suffer a shortfall that will grow as the decade progresses.
Livent Corp (Ticker: LTHM) Can Deliver
LTHM is a pure Lithium play.
They produce lithium carbonate, lithium chloride and lithium hydroxide.
They are well diversified geographically by equally spreading out their market share to Asia, North America, China, Japan and emerging markets.
LTHM is ahead of the curve on lithium. They hold intellectual property on printable lithium formulations for lithium-ion batteries and solid-state batteries as well.
LTHM Technical Setup
The lithium sector took a hit yesterday and presents a nice opportunity to pick up stocks poised to outperform for years.
LTHM has a market cap of $5 billion and revenue of $380 million during the past twelve months … They will soar next year and double again after doubling this past year.
Thursday was a key day to jump in at the breakout level breached in late October. The $25-$26 area is a great area of support.
You can initiate a position against that area with a stop below.
Bring It Home
Welcome to the land of opportunity. December is the time to build for the future.
There are many cross currents that impact trade in December …
You need to stay focused on what’s ahead in Q1 2022 that you are able to position for now and get out ahead of the market.
The Powell charade was a smoke screen to help Biden get the reconciliation bill and debt ceiling passed.
J-Pow has talked tough for months and so far all he has to show for it is $90 billion in monthly stimulus.
I mean, come on can you imagine how scared he is to legitimately tighten policy? The man who blows up the balloon certainly knows how loud the bursting of that bubble will be.
My point is Powell is engineering a deeper correction just so he can resume printing new money.
The end of the long-term debt cycle will not simply die of old age. There is no turning back for the Fed.
They can delay, but not change, their path to greater money printing, and now is the time to stock up on “real asset” producers that will crush next year.
Have a great weekend and as always …
Live and Trade With passion My Friends,
Griff