- Seemingly out of nowhere, legitimate rare earth plays exploded higher late last week
- Like the prices of many other commodities, rare earth prices have firmed (both inside and outside China), but a convincing move upwards is still lacking
- This raises two questions: Why did many of the stocks move higher last week and is this a sign of a turn or just end of year positioning to benefit from the January Effect?
Finally Some Good News
One of the most interesting things about the rare earth element (REE) sector is that the narrative that put REEs on investor radar in the first place is still firmly intact. However, nobody seems to care anymore. Shown below is the 1 year price performance of an equally weighted basket of REE exploration and production companies versus the Dow Jones Industrial Average, S&P 500, and Nasdaq.