There’s a lot of chaos in the markets.
Consumer prices jumped more than expected, raising fears the Federal Reserve may not be able to aggressively cut rates this year. The U.S. just launched an attack on Iranian-backed Houthis, which could open another major front in the Middle East. Bitcoin-related trades are dropping on a sell-the-news reaction to Bitcoin ETFs.
It’s enough to make any one nuts.
But remember, as it’s often said, “There’s always a bull market somewhere.”
One of those bull markets can be found in uranium stocks. Cameco (CCJ) is up about 10% on the day. Uranium Energy (UEC) is up 12% to $7.76. Energy Fuels (UUUU) is up 10%. Even NexGen (NXE) is up about 10% to $7.74 on the day thanks to major catalysts.
For one, “The world’s biggest miner of the nuclear fuel warned it may miss production targets for up to two years. The announcement by Kazatomprom is the latest sign uranium will be in short supply amid growing global demand for nuclear power,” as noted by Yahoo Finance.
Two, according to OilPrice.com:
“The uranium market is only getting hotter, and continued tightness could push prices over $100, analysts from Bank of America and Berenberg Bank wrote in two separate notes.
BofA’s metals and mining team said tightness in uranium markets could extend well into 2025, indicating that prices could run higher through this year. The team of analysts has increased their uranium spot price price targets to $105 per pound in 2024 and $115 in 2025.”
Three, “Geopolitical uncertainty and concerns about the security of uranium supply continue to be the driving forces behind the ongoing uranium rally,” noted Jacob White, Sprott Asset Management ETF product manager, as quoted by ETFTrends.com.
Four, “Miners are struggling to get enough uranium out of the ground. That is helping to push prices of the nuclear fuel to nearly 16-year highs,” they added. In addition, about 22 countries, including the U.S., Canada, the UK, and France just pledged to triple their nuclear capacity by 2050 at the 28th Annual UN Climate Change Conference.
Those are all major catalysts that could send uranium stocks, like CCJ, UEC, UUU, and NXE to higher highs moving forward.
