Uranium Bull Market Catalysts Adding Up

Written by Nick Hodge
Posted May 22, 2019

I have been writing to you for a few weeks now about the uranium bull market that is materializing...

Especially here in North America, where the United States operates the world’s largest nuclear fleet with 99 reactors... but only produces enough uranium to supply one of them.

Which has left one of every five light bulbs dependent on a foreign source of uranium to light our way.

I’ve covered many of the bullish catalysts and how to invest in this new report...

But things are developing so quickly that interim updates like this are needed to keep you fully abreast of what’s happening with uranium.

In the latest sign the sector is heating up, a new ETF has been formed to allow investors to play it.

Announced last week, The Horizons Global Uranium Index ETF (HURA) is the first ETF in Canada to provide direct exposure to the global uranium sector.

Not only will the fund hold shares of uranium mining and exploration companies, but 25% of its portfolio will provide exposure to the commodity itself.

The timing makes clear Horizons is expecting greater demand for uranium investments in the near future. And its portfolio manager, Nick Piquard, said this is because of reasons I’ve been trying to hammer home for you as well, namely that nuclear is the only baseload source of clean electricity in the world:

“There is a realization at the highest levels that wind and solar energy alone will not be able to ensure global carbon emission targets are met,” said Nick Piquard, Portfolio Manager and Options Strategist at Horizons ETFs. “Today, nuclear is the only viable solution to supply zero- emission-base-load-power, and currently, there is not enough uranium being mined to meet planned growth. These factors combined make for a very positive opportunity for the Uranium mining sector.”

And there are other factors now developing...

I’ve told you that President Trump is expected to make a very beneficial decision for the uranium sector by July 14 — essentially moving to create policies that make uranium production in the U.S. competitive once again so we aren’t reliant on foreign fuel for 98 of our nuclear reactors.

Every day, it’s looking more and more likely this is going to happen.

Just this week, the House Appropriations Energy and Water subcommittee said it will no longer allow the Department of Energy to sell excess uranium to pay bills.

This was asked for by Wyoming Senator John Barrasso, who says selling the excess government uranium undercuts the free market for American uranium produced in  uranium-rich states like his.

Congress moving to aid the domestic uranium market is a clear indication to me that Trump is going to take the same approach by his July 14 deadline.

Though I expect him to offer a more significant measure than merely banning government sales.

When this happens, I believe a few choice uranium stocks are going to perform extremely well.

And I’ve put together all this information on them so you can get up to speed before that happens.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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