This Rare Earth Stock Just Hit a New All-Time High. Should You Buy It Here?

Core Insights - JPMorgan announced a $1.5 trillion investment plan, with up to $10 billion allocated for equity investments in companies focusing on critical minerals, which significantly boosted Critical Metals (CRML) shares by approximately 30% [1] - CRML stock is now trading over 2,200% higher than its price in the final week of March, indicating a substantial increase in investor interest [2] - The investment signals a strong institutional commitment to reshoring rare earth supply chains, positioning Critical Metals favorably in the defense and clean tech sectors [3] Investment Implications - Investors are optimistic about CRML benefiting from both direct funding and favorable policy developments, which could enhance demand and strategic partnerships [4] - China's recent export restrictions on rare earth elements may tighten global supply, potentially leading to higher prices and increased domestic demand, further supporting firms like CRML [5] - Caution is advised due to the lack of Wall Street coverage for CRML, which suggests limited institutional oversight and transparency, impacting liquidity and valuation guidance [6] Long-term Considerations - The long-term viability of Critical Metals is dependent on sustained policy momentum and the success of capital-intensive projects, which may take years to realize [7] - If federal support diminishes or rare earth prices stabilize, the stock could face significant downward pressure [7]