It comes as no surprise that uranium prices and the stock prices of nuclear-related companies are falling. The carnage however is not uniform. What the market is trying to sort through is the degree to which the disaster in Japan will derail the presumed ‘nuclear renaissance.’ Uranium prices had risen on the belief that in the developed and emerging markets nuclear energy would be a greenhouse gas-free energy source. Going forward the question at this point is largely a political one. For investors there are a number of ways to play this including options-related strategies that target not only a rebound in nuclear names but also the volatility surrounding the entire sector. In today’s screencast a look at the nuclear energy sector.
Items mentioned in the above screencast:
The carnage in uranium prices is impressive. (WSJ, The Reformed Broker)
What damage has been done to the prospects of nuclear energy? (Smart Money Europe, Bespoke)
How to trade the nuclear meltdown. (Investing With Options)
Daily price chart of the Market Vectors Uranium+Nuclear Energy ETF (NLR). (Finviz)