News
28 October 2024
Commodity-related companies are tipped to do very well in 2021 as governments around the world invest into infrastructure projects to stimulate the economy, according to Gleneagle Securities’ Gregory Tolpigin.
Commodity-related companies are tipped to do very well in 2021 as governments around the world invest into infrastructure projects to stimulate the economy, according to Gleneagle Securities’ Gregory Tolpigin.
And companies exposed to the growing rare earth elements and tin markets are in pole-position to capitalise on this influx of government money.
Ahead of his presentation for Reach Markets’ fortnightly ‘The Insider: Meet The Fund Manager’ webinar series, Mr Tolpigin noted infrastructure projects are traditionally used to stimulate the economy following an economic downturn.
The Great Ocean Road is a prime example of this, Mr Tolpigin noted.
Initially conceived in the 1880s, actual work on the 664km stretch of seaside asphalt didn’t commence until the end of World War I, when then-chair of the Country Roads Board, William Calder, advocated for its construction as a means to create employment for returned servicemen.
Mr Tolpigin said 2021 is unlikely to be an exception to this rule.
But he added that the push for renewable energy generation and the gradual phase out of combustion engines in cars mean the types of projects the government chooses to invest in will likely differ from previous years.
“[We’re talking about] wind power stations, hydro power stations, electrical vehicle charging networks, the whole EV revolution, we’re talking nuclear power generation, transitioning from coal power stations to other forms of electricity demand and electricity production,” he said.
Greg Tolpigin will be joining us for ‘The Insider: Meet the Fund Manager’ on Friday 26th February. Book here.
Rare earths shoot for the moon, tin for the win
Mr Tolpigin sees these factors creating a supportive environment for both rare earth elements – used in batteries and renewable power generation – and tin in the months ahead.
The market for rare earth elements is tipped to grow at a compound annual growth rate of 10.4% to hit USD $20.6 billion by 2025, driven by increasing demand for electric vehicles whose batteries rely on these minerals.
Meanwhile global tin production was hurt by the coronavirus pandemic, leading to a deficit of 5200 tonnes in 2020 and a forecast deficit of 2700 tonnes in 2021 as demand increases 6%.
Greg Tolpigin will be joining us for ‘The Insider: Meet the Fund Manager’ on Friday 26th February. To learn which rare earth element and tin stocks have captured Greg Tolpigin’s eye, please book here.
‘The Insider: Meet the Fund Manager’ is a free webcast series which gives you direct access to prominent fund managers who share their “Insider” views on their favourite stocks that they think have the greatest upside. This session is live and interactive and includes a live Q&A. Spots are limited, so please book into this session as soon as possible.
Any advice contained in the presentation is general only and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you.
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