Disclosure: We are currently long Cameco (CCJ) and Denison Mining (DNN). We have had exposure to Uranium Energy Corp (UEC) and Energy Fuels (UUUU) earlier in the year. At any point, we may add or remove exposure to these names.
If you have spent any time on our site, you know we are big uranium bulls. With that being said, our exposure is minimal right now once we took profits after the big run-up earlier this year. In a recent interview, Elon Musk joined the pro-nuclear fray, expressing his bullish sentiment on uranium:
I'm also kind of pro-nuclear. And I'm sort of surprised by the public sentiment against nuclear.
Some of the public may be sort of surprised by Musk's pro-nuclear stance given that he is heavily invested in the solar energy space. However, it just shows how everyone in the EV space realizes that in order to make EVs ubiquitous, we need as much cheap, clean energy as we can get. After all, what good are EVs if the power used by them comes from sources with a high carbon footprint such as coal or natural gas?
Despite the sizeable run-up in prices in the nuclear power space, we feel the long-term outlook is solid. It remains one of our favorite investment themes. However, we are currently bearish on the US stock market and stock markets worldwide so we have lightened up our exposure in case uranium names fall alongside the broad indexes.