Pinpointing a sector which could potentially continue to outperform for decades is the ultimate goal of those who have a long-term investing timeline and are willing to make an investment in today’s market which contains significantly fewer value plays than in previous years, as investors have continued to pile into equities at the expense of a range of commodities sectors which have lagged behind.
Within the commodities space, a number of interesting opportunities have begun to emerge for those with long investment time horizons and are willing to put their money to work in sectors which may carry short-term volatility.
One such sector which I argue investors should consider given global growth trends which are poised to take a number of private and public companies into the future is the lithium space. Lithium miners, distributors, and end users of the rare earth metal are already competing in a race to produce the best and most efficient batteries to power a growing autonomous vehicle industry, which is still in its infancy.
Global X Lithium & Battery Tech ETF (NYSE:LIT) is one excellent exchange traded fund (ETF) which tracks the broader movements of the lithium sector overall.
Using ETFs such as the Global X Lithium and Battery ETF to make a broad-based play on this sector is a strategy which I believe to be prudent, given the wide range of companies spanning this sector with varying levels of balance sheet stability and earnings quality.
Invest wisely, my friends.
