“In China, battery electric vehicle sales soared 96% in October from the year-ago period, and for the first 10 months of the year Chinese electric vehicle sales were tracking 45% ahead of the year-ago period, according to a research note from Nomura Instinet on Nov. 21,” according to IBD.
With the economy recovery maturing, the materials sector, which is closely tied to the prices of raw materials, have traditionally done well as inflation rises and late-cycle economic expansions help support demand. With more lithium battery factories coming online, production of the metal could triple over the next five years.
Historically, traditional materials ETFs are solid performers in December and January.
For more information on the materials space, visit our basic materials category.