Are Uranium stocks about to take off?

Are Uranium Stocks about to Take-off?

This is trillion dollar question. As the Democrats take majority of the House, Senate and Presidency all things ESG (Environmental, social and governance) investing is becoming a more important theme and potentially a profitable one. One investing theme that has caught investors eye is the Uranium or Nuclear trade.

Nuclear is by far, the most efficient way to power the planet but has it’s downsides. They include contamination and waste. A contamination is worst case, think Chernobyl. Nuclear waste is also a pitfall. We can bury it but then you have to worry about into getting into ground water, soil and spread through decay.

Right now though, it doesn’t seem to matter, stocks like Cameco (CCJ), a Canadian Uranium producer, are hitting new highs and are quietly approaching multi-year highs.

Cameco Stock Chart (CCJ)

At the same time, supply shortages of Uranium are hitting the market as the biggest miner in the world has had to shutdown Uranium mining operations due to a Covid 19 outbreak.

We see two plays, for the higher risk investor / trader, Cameco (CCJ), is the best way to play the Uranium / Nuclear trade. The second best way, specifically for more conservative investors / traders is through the Global X Uranium ETF which is traded under the symbol (URA).

Uranium / Nuclear trade has a ways to go; with the Democrats having control of the House, Senate and Presidency over the next few years, leading to more environmental and socially responsible policies. These policies will directly benefit the ESG investing theme and enhance its popularity and traction over the investment landscape. BULLISH