Thursday screencast: enter the rare earth ETF

abnormalreturns
October 28th, 2010

The rare earth metals theme is not unlike others that have erupted into bubbles. We all know rare earth metals are important, not unlike the Internet, we just don’t know how much and who will benefit. That makes it difficult to put any sort of valuation on the companies in this space. That is also the reason why they have run up so rapidly. On top of that now you can add the introduction of an ETF that covers the rare earth metals space. Whether this marks a top or simply adds fuel to the fire remains to be seen. However today’s news-related volatility should give investors some pause as they ponder this new ETF. In today’s screencast we look at the chatter surrounding the introduction of the Market Vectors Rare Earth/Strategic Metals ETF (REMX).

Items mentioned in the above screencast:

The Market Vectors Rare Earth/Strategic Metals ETF (REMX) rolls out. (IndexUniverse)

Under the hood of REMX. (ETFdb)

How big is the rare earth/strategic metals space? (24/7 Wall St.)

What is the reality behind most of these companies? (Money Game)

Have rare earth metals reached ‘fad status’? (Random Roger)

Beware a buzzword-laden ETF launch. (Street Sweep)

Have rare earth stocks jumped the shark? (Behind the Headlines)

China resumes exports of rare earth metals. (NYTimes via Money Game)

Daily chart of Molycorp (MCP). (Finviz)

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Tickers: MCP, REE, REMX