Lithium ETF Pullback Could Give Way to Better Times

“Indeed, the tight market is going to continue to squeak into 2018, according to Benchmark Minerals and other experts. Even as new mines come online. The mines simply can’t come online fast enough. It takes many years to find and develop a deposit. And there are risks all along the way,” reports ETF Daily News.

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.