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Inside the Market A new term to know for commodity investors: ‘MIFTs’ to generate outsized returns

A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

Merrill Lynch research believes that “future technologies,” not global manufacturing, will be the source of the biggest investment returns in metals markets,

“We classify nickel as a MIFT (metal important for future technologies) as the popularity of electric vehicles, which use the metal in batteries, is set to increase near-term. Given a lack of investment in mines, prices should rally in the coming years … Looking at cobalt, demand increases from EV battery producers have helped push prices to levels that give every operation globally very healthy margins … the DRC should remain key given it holds 48% of reserves, which has caused apprehension for a range of reasons. The country’s production has been volatile periodically; the last time exports dipped, China agreed to invest $9bn in the DRC in exchange for copper/ cobalt supply”

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“@SBarlow_ROB @SBarlow_ROB ‘MIFT’ is a term metals investors will get to know (ML):” – (research excerpt) Twitter

“@SBarlow_ROB Critical MIFTs : metals important for future technologies (ML) “ – (table) Twitter

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After receiving approval for a US$2.6-billion pay package, and seeing lineups of hedge funds looking to short Tesla Inc. bonds, it’s hard to view Elon Musk’s “we’re going bankrupt” April Fool’s joke as anything but ill-advised.

Add to this that Amazon.com Inc. appears to be in the White House crosshairs and pessimism surrounding Facebook Inc. is growing and there’s a growing suspicion that technology stock market leadership is waning,

“Accelerating the measures [to protect user privacy] is clearly politically expedient, which is why I chuckled at the assertion in the press release headline that “It’s Time”. As with so much news-flow relating to data over the past two years, there’s an overwhelming sense that the barn door is casually being closed long after the horse has bolted.”

“Zuckerberg’s Just Doing What He’d Have Been Forced to Do” – Gadfly

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“Elon Musk Sends April Fools’ Tweets Joking of Tesla Bankruptcy” – Bloomberg

“Tesla Model 3 Deliveries Expected to Come Up Short; Shares Fall” – Bloomberg

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Hudson’s Bay Co announced that client information networks for Saks and Lord and Taylor customers had been hacked. Major data hacks are becoming a monthly occurrence and I still haven’t been able to figure out why companies like Palo Alto Networks that sell security software aren’t the market’s best performers.

“Saks, Lord & Taylor hit by payment card data breach” – Reuters

Oil prices are climbing despite a massive new oil find in Bahrain,

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“Bahrain announces highly significant oil and gas find” – Bahrain News Agency

“Oil Extends Rally After U.S. Rigs Decline as Iran Risks Persist” – Bloomberg

“What the oil-futures curve is saying about where crude is heading next” – Barlow, Inside the Market (March 28, 2018)

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Tweet of the Day:

Diversion: “Here’s Our Roundup of All the April Fools’ Day Pranks We Didn’t Hate This Year” – i09

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