Lithium ETF long?

Discussion in 'ETFs' started by bearmace, Mar 3, 2014.

  1. bearmace

    bearmace

    I'm considering opening a sizable position in LIT, a lithium etf.

    This is a pairs trade based off of the increasing demand of lithium batteries for electric vehicles. Tesla just announced they are going to be opening a gigafactory and are gonna need a shit ton of lithium to produce their tesla batteries for the cars. As electric cars gain more and more traction around the world due to the efficiency and clean energy, I think Lithium will be poised for at least a double bagger over the next few years.

    On top of that the lithium chart looks great, just breaking out of a multi year down trend.

    Let me know what you guys think of this play.