Rare Earths & Market Impact

Geopolitical tensions are directly impacting markets. The latest flashpoint? Rare Earth Minerals. Reports indicate China, controlling ~92% of global processing, is restricting exports to the US. This isn't just news; it's a major variable for investors. 🧵👇

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Why does this matter? Rare earths are CRITICAL for modern tech: iPhones, EVs, wind turbines, advanced weaponry (F-35s, subs), MRI machines & more. China's dominance gives it significant leverage, turning these minerals into strategic assets

The reported export controls on 7 types of rare earths (+ related products like magnets) directly target key US industries. Unlike tariffs, this is leverage where the US has limited immediate retaliation options due to dependency (70% of US imports 2020-23 came from China).

Portfolio Impact

his highlights how geopolitical events create REAL market turmoil & supply chain risk. Potential impacts:

➡️ Increased costs for tech/EV/defense sectors

➡️ Inflationary pressures

➡️ Heightened volatility in specific stocks/ETFs

TA Strategy: How to navigate?

➡️ Monitor ETFs like $VanEck Rare Earth/Strategic Metals ETF(REMX)$ (Rare Earth/Strategic Metals) & $Global X Lithium & Battery Tech ETF(LIT)$ (Lithium/Battery Tech) for technical signals (breaks, volume).

➡️ Watch key sectors (Semis $VanEck Semiconductor ETF(SMH)$ , Defense $iShares U.S. Aerospace & Defense ETF(ITA)$ , EVs) for relative strength/weakness.

➡️ Keep stops tight & manage position size. Uncertainty demands discipline.

The US is trying to build domestic supply chains ($439M+ DoD funding), but experts agree this takes YEARS. Companies like USA Rare Earth & Phoenix Tailings are scaling, but can't fill the gap immediately. This vulnerability = ongoing market risk factor.

Key Takeaway for Investors

Geopolitical factors are not abstract – they directly influence market dynamics & your portfolio. Stay informed, use technical analysis to gauge market reactions & manage risk proactively. Analysis > Headlines.

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