Morgan Stanley says the latest rally that has caught the eye of Wall Street Bets won’t last. Here’s why.

Morgan Stanley says the latest rally that has caught the eye of Wall Street Bets won’t last. Here’s why.

The entrance of a mothballed mine of Energy Files Resources pictured on October 27, 2017 outside Ticaboo, Utah. Investors may want to move fast to catch those gains, warns our call of the day from Morgan Stanley.

“While coal and natural gas prices are driven up by actual market tightness, uranium’s underlying supply-demand fundamentals haven’t meaningfully changed over the last few months to warrant this price surge,” commodity strategists Marius van Straaten and Susan Bates told clients in a note. “Although the current rally is likely to have further to run, we are not yet convinced that it can be sustained into next year.”

Joining a “wider energy rally,” uranium’s spot price has gained 20% since August at $39, the highest since 2015. The strategists acknowledge uranium buying by the Sprott Physical Uranium Trust CA:U — to keep it away from nuclear power plants — has played a key role .


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