Capitalize on an Exploding Trend: 1 Stock + 2 ETFs
Jan. 2024 monthly deep dive & Blend Portfolio update
Hi Antagonist members,
Welcome to our January monthly deep dive and Blend Portfolio update. Here’s what we’ll cover:
Continuing to Capitalize on an Exploding Trend
More Supply and Demand Tailwinds
AI Technology Needs…Nuclear Energy?
Changing Attitudes toward Nuclear
An Overlooked Supply Problem: The Labor Crunch
How We’ll Profit: 1 Stock + 2 ETFs
Blend Portfolio Dashboard
1. Continuing to Capitalize on an Exploding Trend
For this month’s additions, we’re continuing to ride a trend that has already been extremely profitable for us.
We selected our first position in this space last June. It has since soared 84% in just 7 months!
We doubled down on this trend in November, and that pick has rewarded us with a 13% return since then.
You may have already guessed this, but the trend I’m talking about is uranium.
And even though uranium prices have rocketed 250% since mid-2021, I believe we’re still in the the early stages of a long-term bull market.
2. More Supply and Demand Tailwinds
The chart below shows just how large the gap is between uranium production and demand—and how that deficit is projected to grow sharply over the next several years.
In previous articles, I wrote extensively about why this deficit exists. For the sake of space and time, I won’t repeat everything here. If you missed those posts, however, here are the links:
AI Technology Needs…Nuclear Energy?
Even though the uranium market has been on fire, most investors’ attention has focused on another red-hot trend: artificial intelligence.
Investors aren’t wrong. AI-related stocks soared last year, and they carried the entire S&P 500 with them.
But now it appears that these two trends are colliding.
At the World Economic Forum in Davos earlier this month, Sam Altman, CEO of OpenAI (the company that owns ChatGPT), said that for artificial intelligence to reach its full potential, we’ll need an energy “breakthrough.”
How much of a breakthrough? And how soon?
AI data centers will need the same amount of electricity as a medium-sized country by 2027!
Altman said that this should motivate the world to invest in nuclear fusion. It’s important to note, however, that fusion is different than fission.
Fusion energy mimics how stars, such as the sun, power themselves. Its potential as a cleaner and more abundant energy source is immense.
Fission is the reaction used in current nuclear power plants, and it depends on uranium.
The problem, however, is that despite decades of trying, engineers and scientists haven’t been able to make a fusion breakthrough. As a result, it remains largely experimental and not yet commercially viable.
What does this have to do with uranium?
Something has to fill the energy gap until fusion energy is a reality (if that ever happens).
Nuclear energy (fission), with uranium as a key component, is the world’s best option—now and for the foreseeable future.
If you’re not familiar with the benefits and potential of nuclear energy, I highly recommend watching the “Energy Transition Crisis” docuseries by
, especially episodes 5-8.Changing Attitudes toward Nuclear
The mere fact that nuclear was being discussed at the World Economic Forum is significant. While nuclear energy is recognized for its low carbon emissions, attendees have traditionally been reluctant to embrace it.
If Altman’s comments are a sign of changing attitudes, we could see uranium playing a vital role in powering not just AI’s growth, but also the entire transition away from fossil fuels. (To read more about this transition and how to profit from it, check out my free special report).
An Overlooked Supply Problem: The Labor Crunch
The surging demand for uranium isn’t the only bullish tailwind for our positions. The challenges are on the supply side as well.
Simply put, there’s not enough uranium. And it’s not like you can just turn on a spigot and get more of it either. Mining is incredibly difficult work that takes years.
That brings us to another major shortage, one that isn’t talked about enough. Even if we had enough mines, we don’t have enough people to do the mining!
More than half of the U.S. mining workforce, approximately 221,000 people, is expected to retire by 2029.
To compound the problem, most young people aren’t interested in pursuing careers in skilled trades, and that includes mining. According to Uranium Insider, this skilled labor shortage is already causing production shortfalls for existing producers.
These labor shortages, along with supply chain problems, will make it nearly impossible to meet the rising demand for uranium. There doesn’t appear to be a solution in the near future either. That’s why, despite the incredible run we’ve already enjoyed, I still expect uranium prices to rise substantially higher.
How We’ll Profit: 1 Stock + 2 ETFs
To continue to cash in on the growing uranium bull market, I’m adding 3 new positions to our Blend Portfolio: 1 stock and 2 ETFs.