Sprott Physical Uranium Trust: War Makes Uranium Trade Too Risky For Now

jotily/iStock via Getty Images Thesis

Several days ago, I published an article entitled Go Long the Nuclear Revival which concluded by recommending investing in uranium through the Sprott Physical Uranium Trust ( OTCPK:SRUUF ). While the reasoning and arguments made in the piece still stand and I believe will be valid over the longer-term, the immediate risks posed to the sector by the ongoing war in Ukraine make investing in uranium too risky in the short-term. For that reason, I have liquidated my holdings in the trust and plan to avoid the sector until the situation in Ukraine stabilizes and fighting has stopped. Geopolitical Risk

It’s often advisable to ignore the noise and low-level everyday political rumblings when investing. Better to focus instead on company fundamentals and industry trends. Some events however, such as major geopolitical shifts like the one going on in Europe need to be incorporated into […]

Click here to view original web page at seekingalpha.com

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.