Chart says it all. Macro tailwinds across the board for both commodities, and especially Uranium. IMO over the rest of the 2020's we see governments across the world push heavily into Nuclear Energy (NE), and public narratives shift in favor for NE. July 2023 was the hottest on record and we seem to be making new records every year. All it will take is one major climate event for narratives and funding to shift towards NE in a very big way, as its really the only practical 'green' energy source for us at the moment.
I got Long today. Some of these Uranium plays seem very attractive to me as buy & hold investments & to even accumulate on SP weakness.
kkandru
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With all the market conditions, FED Rate cuts, UUUU might not see further traction until rates are cut fully . If so expecting it to be $2 levels . If I'm wrong, Equities /Economy has to support the up move which seems impossible now.
kkandru
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This has to reset to $1-@2 level on FED rate cut shock , that's when real bull starts and takes into 2030's got higher highs. It holds good for all assets. All fund managers know it.
freddie1996
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@kkandru, Could you elaborate? Fed rate cut in theory should increase inflation which is good for precious metal prices. Yes bad for stocks, but precious metal mining stocks are an exception and are correlated to their respective previous metal prices. So I'm not sure we will see a $1-2 price, however I am prepared for that price as that was originally my buying price but I changed my view when I saw additional technical signs the market had bottomed (at least short - mid term).
kkandru
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@freddie1996, I'm not saying it's going to drop now. It goes up for sometime, once FED sees economy not doing well due t lag effect of interest rates, that's when investors bail out and this should get 50% correction which is when I expect to see this crash level for all asset classes to start with. When the QE/ZIRP announced, that's when real growth begins.
I'd wait for that point to add more or start buying more. It's a cycle anyways , always repeating.
I may be wrong, but when , if this happens, it's the best low cost entry for next several years of bull market.
kkandru
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@freddie1996, Also if I'm wrong , and if this goes to 24, I'd jump in at 12 for a long long term a 20X-30X