Rare Earth Stock Investors Are about to Get Clobbered

Oh boy... the crowd is about to get killed in resource stocks again. And this time, the Grim Reaper comes in the form of "rare earth element" stocks... As my editor Brian Hunt told you last week, "'Rare earth elements' is the name of an exotic group of metals, including strange-sounding members like lanthanumand cerium. These little-known metals are crucial components of electric car batteries, wind turbines, and advanced electronics (the kind in your iPod or cell phone)." Rare earth elements are the hottest thing in the mining world right now. China holds a virtual monopoly on the rare earth industry. And in the past few months, the Chinese have reduced the amount of rare earths they're willing to ship to other countries. This has created a frenzy for the handful of rare earth element plays in the stock market. Take Molycorp

for instance...

.