URA - URA: Topping Long-Term But Still A Good Trading ETF

2024-07-02 16:35:37 ET

Summary

• Nuclear power accounts for 20% of US electricity, fueled by Uranium, which produces radioactive waste with mixed global feelings.
• Global efforts to combat climate change are driving the rapid expansion of nuclear energy, with a projected doubling of Uranium mining by 2040.
• URA trades like what I call a "tail" position as described in the article, and that is how I continue to view it.

A strategist from a brokerage firm is not the investor type I tend to put a lot of faith in. I've just seen too much since 1993, when I had the privilege of sitting in a big room early every morning with Barton Biggs, Byron Wien and Stephen Roach, three of the best ever in my opinion. That was back at Morgan Stanley, more than 30 years ago. Fast-forward to 2024, and Mike Wilson, the current Chief U.S. Equity Strategist & Chief Investment Officer at that same firm, said something on a podcast the other day that summed up how I think of many parts of the investment market, including Uranium, the subject of this article....

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