Free Weekly Email 6.18.25

Is nuclear power set for a revival?

After decades of stagnation, the supply of nuclear energy is poised to increase significantly in the coming years on the back of rising power consumption, a shift toward cleaner energy, and the need for round-the-clock power sources, according to Goldman Sachs Research.

By 2040, global nuclear generating capacity is expected to rise from 378 gigawatts to 575 gigawatts, representing an increase in nuclear energy’s share of the global electricity mix from around 9% to 12%. A growing number of countries are backing a pledge to triple nuclear energy capacity by 2050, write Goldman Sachs Research analysts Brian Lee and Carly Davenport.

The expected increase in generating capacity coincides with a surge in support for nuclear power globally and a spike in investment in nuclear power facilities. The total nuclear fleet of around 440 reactors today is set to expand to roughly 500 by 2030, and well over 400 additional reactors are in the planning or proposal stage, according to the World Nuclear Association.

Mainstream has finally acknowledged that the future lies in nuclear power. Articles like this from Goldman Sachs suggest to me that nuclear power is now considered a viable investment option for mainstream investors.

Cole Smead: The Market Is Dead Wrong on Canadian Oil Stocks | In the Money with Amber Kanwar

Cole Smead is back—and doubling down. The outspoken U.S. fund manager from Smead Capital Management returns to In the Money with Amber Kanwar to explain why he's still bullish on Canadian oil stocks despite investor apathy, volatile oil prices, and political headwinds. He breaks down the major disconnect between market perception and industry fundamentals, explains why Canadian oil producers are "a buy across the board," and unveils his theory of consolidation: “Who’s your daddy?”

From Strathcona’s move on MEG to a wild forecast that Cenovus could end up with Suncor, Cole doesn’t hold back. Smead tackles listener questions on some of the most talked-about names in the oil patch. He gives his take on Whitecap (WCP.TO), discusses whether Baytex (BTE.TO) or Athabasca (ATH.TO) are M&A targets, and why Imperial Oil (IMO.TO) has worked—despite his skepticism about its dividend strategy.

I have been following Cole Smead for years, and he is a top-notch value investor. I like this interview because I have been discussing some of the stocks he covers in this video. I like his view on coal and Glencore.

DoubleLine’s Gundlach Says ‘Reckoning Is Coming’ for US Debt

America’s debt burden and interest expense have become “untenable,” a situation that may lead investors to move out of dollar-based assets, according to DoubleLine Capital’s Jeffrey Gundlach. “There’s an awareness now that the long-term Treasury bond is not a legitimate flight-to-quality asset,” the veteran bond manager said Wednesday in an interview at the Bloomberg Global Credit Forum in Los Angeles. A “reckoning is coming.”

Gundlach discussed gold's increased mainstream appeal and the unusual behavior of the U.S. dollar and Treasury yields. The market is beginning to recognize that the long-term Treasury bond is not a "legitimate flight to quality asset." Gold has become a "flight to quality asset."

Trump Will Pick 'Uber Dovish' Fed Chair: Paul Tudor Jones

Paul Tudor Jones said President Donald Trump is likely to appoint an “uber dovish” Federal Reserve chair to accommodate his growth agenda, contending that Treasury Secretary Scott Bessent would likely be his pick when Jerome Powell’s term ends next year.

If he were in Trump’s shoes, Jones said, “the first thing I would do is I would appoint the most dovish central banker I could find to deliver interest-rate cuts.” Then, he would push through an austerity package with a tax hike on top earners and broad-based cuts to programs including Social Security, Medicaid, and defense spending, Jones said. He would also press to reduce rates to 2.5%, contending there “will be a point when the markets demand it.” “At some point, the bond market will call B.S. on governments around the world playing chicken with them,” he said.

Mining is massively out of favor

Mining as a percent of total global equity is at an all-time low. Is this percentage likely to go higher or lower over time? I think it is heading quite a bit higher.

SPUT's US$200 Million Uranium Buying Plan Spurs Market Rally

Its Monday (June 16) rise is a 9.7 percent gain from the previous week's close of US$69.47, and came after news that the Sprott Physical Uranium Trust (TSX:U.U,OTCQX:SRUUF) had penned a US$100 million bought-deal financing.

The financing was upsized to US$200 million the same day "as a result of strong investor demand."

Sprott (TSX:SII,NYSE:SII), acting on behalf of the trust, confirmed the agreement, which will see Canaccord Genuity Group (TSX:CF) purchase 11,600,000 units of the trust at a price of US$17.25 each.

The offering, expected to close by June 20 pending regulatory approvals, will fund purchases of uranium oxide concentrates and uranium hexafluoride, in line with the trust’s mandate to hold physical uranium.

This is the type of big news the uranium market needed to shock the bears to cover their shorts and for bullish sentiment to get fired back up. It appears big money is moving into the uranium market, and if the price of spot begins to move north, we may see a sustained move in the uranium stocks.

That’s it for this week.

Regards,

John Polomny