Today’s investing strategies and trading connections are a renewed and completely different version of what most investors have been used to in recent years. Everything is now as connected as ever in a strategy that professionals now term “global macro.” The premise of this method and market mechanism is that when one cog of the global market machine begins to move, then others likely will follow shortly.
When investors analyze the global markets in terms of price action, it is evident that the market is now giving Chinese stocks preferential treatment. Names like the iShares MSCI China ETF (NASDAQ: MCHI) have outperformed the broader S&P 500 index over the past quarter. If price action is any indication for investors, then this factor shows that China’s economy might be going on a new path higher for the rest of the year.
With this in mind, the global macro picture suggests that stocks exposed to the turnaround and potential growth of China’s economy might be beneficial holdings in the coming quarters, particularly platinum in the basic materials sector. As the commodity might see new larger orders coming out of China, names like Sibanye Stillwater (NYSE: SBSW), Platinum Group Materials Ltd. (NYSE: PLG), and even the GraniteShares Platinum Trust (NYSEARCA: PLTM) could become top picks for investors for the rest of the year.
Outperformance Connects the Dots on Sibanye Stillwater
[content-module:CompanyOverview|NYSE: SBSW]Shares of Sibanye Stillwater stock have now delivered a net return of up to 31.4% on a year-to-date basis, significantly outperforming the S&P 500 despite the index’s recent volatility spikes during the first quarter of 2025. This preference in price action can connect the dots for investors who are now aware of the bullish theme coming out of China.
The reason for the bullishness is that platinum is one of the main commodities that come in high demand when automotive orders break out. Some construction components are also heavily exposed to an economy's booming cycles, justifying the sentiment with China’s current setup.
Understanding that the market has now become aware of this theme, investors shouldn’t be surprised to see up to $46 million in institutional capital come into Sibanye Stillwater stock over the past quarter as another vote of confidence for the company’s future under this environment.
These buyers aren’t the only ones willing to express their optimism, however. Analysts from the Royal Bank of Canada have now placed an Outperform rating on Sibanye Stillwater stock, this time also placing a valuation target of up to $5.3 per share, which implies a rally of as much as 21.5% from where the company trades today.
A Great Tail Setup for Platinum Group Metals
[content-module:CompanyOverview|NYSE: PLG]This company might be a fly under-the-radar name, but one that is cheap enough for investors to consider the implications for a potential massive run higher. Platinum Group Metals is not only exposed to the platinum trade but also to the copper trade, another key commodity that tends to come in high demand once major economies break out.
Knowing that the company only trades at a market capitalization of $132.3 million today, investors can be exposed to the sort of tail scenarios that make for an unforgettable return profile. This is because it is easier for a small company to see a double-digit upside return on valuation than it is for a much larger one.
With Platinum Group Metals also in the exploration industry, there is the potential that on any given day, the company reports new reserves available for sale in the open market. Knowing that demand is going to trend higher due to China’s breakout, the incentive to keep digging for new reserves could be front of mind for the company.
GraniteShares Platinum Trust: A Diversified Way to Tie the Play Together
[content-module:CompanyOverview|NYSEARCA:PLTM]Through an exchange-traded Fund (ETF) like the GraniteShares Platinum Trust, investors have the chance to diversify their bets across potential breakouts in the platinum space. They are also exposed to the momentum found in this portfolio.
Over the past quarter, this ETF has also outperformed the S&P 500 by just under 10%, making it another candidate for momentum fund managers to potentially buy more of this stock for themselves in a new potential breakout. This belief can be proved by checking the recent institutional buying activity within this ETF, where investors can pinpoint the recent sentiment.
Over the past quarter, up to $2.9 million of institutional capital decided that this platinum ETF is a worthy pick for their allocation needs moving forward, reiterating the fact that investors can—and should—be on the lookout for the potential upside that can be had in this space.
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