Uranium

On March 9 I posted an article called Beware of Fads, as pertained to the uranium stocks. I specifically mentioned two, USU and CCJ, that had great runs and I questioned whether these were just fads for the time being. Since I wrote that article the S+P 500 is down 5% and both uranium stocks are down close to 15%, not what I would call a bursting bubble but would anyone be surprised if the next 20% was down?

I hope you will click through to that article and read the comment that was left. The informed reader notes the run up in uranium prices, the length of time it takes to get a mine up and running and what various countries are planning to do with nuclear power. There are also links provided for more information.

We are still years away from a big ramp up in nuclear power. Based on the time line in the comment I would think it is still too far away for it to matter to the stocks. Assume I have it wrong though and the reader is 100% right, which certainly could be the case. The reader's thesis relies on the market to get it right. The market gets macro things right a lot more often than micro. It is not obvious to me that the market will get these stock right on the first go around or even the second.