Cameco: Because The Diagnosis Is Commodity-Price-Induced Global Stagflation

RHJ/iStock via Getty Images Investment thesis: The global economic landscape looks increasingly like it permanently shifted from a decades-long trend of slowing inflation and healthy economic expansion to a stagflationary environment. The challenge for investors going forward will be to produce returns on investments that will be high enough to beat inflation. It is not something that is easy to do, with inflation running high, while the global economy is showing signs of deceleration. Cameco (NYSE: CCJ ) is one of the increasingly rare companies that have what it takes to provide returns that will beat inflation within the current environment. It produces a product that will see exploding demand going forward, while global supplies are somewhat limited. As for the price of uranium, it can rise dramatically, without producing a great deal of demand destruction, given that uranium fuel makes up a very small portion of the overall […]

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