In times of significant market volatility, it is important for investors to not just aim for upside movement of stock prices, but to also protect themselves against downside risk. Amid the coronavirus pandemic and US elections, stocks in 2020 have seen much more volatility than in a decade. Selected tech stocks, particularly those that benefit from stay-at-home regulations, have done the best for 2020, along with vaccine-related stocks. However, these stocks have done exceptionally well because of a pandemic — and investors should take note that these exceptional gains are not sustainable. Investors ought to expose their portfolios to longer-term growth plays if they seek volatility.

The incoming Biden administration in the US has plans to rejoin the Paris Accord and for a multi-billiondollar “green” infrastructure investment programme. In the next four years, focus on curbing emissions by the US, EU and China may turn investor attention to the electric vehicle (EV) sector, to companies beyond Tesla.

Part of the EV value chain is the lithium sector, as lithium is a key component of batteries used to drive (pun intended) EVs.

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