Stick with Lithium in face of weakening Macro situation
We don’t think that the equity market has quite understood that even if governments stabilize energy prices for consumers, there may not be enough gas in Europe to go around over the winter. That will lead to closures of industrial facilities across the Eurozone, impacting jobs and earnings, as well as GDP and IP. We are not seeing material cuts in earnings forecasts on a bottom-up basis and that suggests to us that risks in the market, particularly for more industrially-leveraged sectors, are still weighted to the downside. Despite strength in the Base Metals complex over the past week, we...