Is This The Greatest Stock Market Rally Of All-Time?

  1. BofA’s latest Flow Show report has some good nuggets. For example, since the March lockdowns began, central banks have “bought $1.4bn of financial assets every hour” and the “market cap of Nasdaq 100 [has gone] up $1.6bn every hour.”

  1. According to BofA, the SPX is now within spitting distance of becoming the “Greatest Rally of All-Time”. It needs to cross the 3,630 level to make it official.

  1. Going back to my first chart on oil and comment on the bullish CAPEX dynamics. This chart of International Rig Counts from JPM shows supply capacity is trending to unsustainable levels.

  1. With monetary policy tapped out across the developed world, fiscal is going to become a larger part of the economic equation. And government spending on “green” energy is going to be a big part of that. One of the companies we’ve been bullish on for a while now is lithium miner Albemarle (ALB). Lithium battery capacity is expected to reach 2,450 GWh by 2029. If we get anywhere near that range, it’s going to require roughly 2mn metric tons of LCE. That’s well over 5x current demand. Lithium mines take 4-years on average to come online before they can actually deliver supply to market. Currently, there’s little demand for funding for any large projects in the space. The lithium market is headed for a supply crunch. ALB stock looks like it’s starting to sniff this out. The chart is weekly.

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