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Buy This ETF If You Love American Energy Independence

Buy This ETF If You Love American Energy Independence

Until now, many Americans have taken cheap electricity for granted.

Why wouldn’t they?

During the past decade, the U.S. became the world’s largest producer of oil and natural gas.

And what the U.S. needed beyond its own production could be bought from other countries.

This made access to fossil fuels nearly guaranteed.

That’s quickly changing.

The current administration’s energy policies have discouraged the production of fossil fuels.

The United States’s title as “lead producer” may be gone soon.

But over the long run, this will turn out to be a non-issue.

That’s because the U.S. is making a major shift to clean energy.

Our Need for Energy Independence Has Become Clear

According to BloombergNEF, the U.S. has already invested $750 billion on clean energy since 2010.

But since clean energy only accounts for about 40% of electricity, the transition still has a long way to go.

To meet our needs in the near future, the U.S. will have to buy more fossil fuels from other countries.

That scenario is becoming more problematic each day.

Global tensions with Russia have disrupted the energy market. This has made fossil fuels much more expensive.

Even if the tensions prove to be short lived, the U.S.’s need for energy independence has become clear.

And keep in mind that we’re pushing for net-zero emissions. So that will only be possible with clean energy sources.

This creates a HUGE investment opportunity.

The World’s Most Reliable Energy Source

Investors have primarily focused on renewable energy and for good reason.

According to the Energy Information Administration, they account for 20% of electricity generation. This is expected to reach up to 35% by 2030.

But some investors are overlooking another key energy source: nuclear power.

Nuclear energy isn’t a new concept, and it’s not renewable.

But it’s a low-carbon energy source that already accounts for 19% of U.S. electricity.

And nuclear may be more important to energy independence than investors realize.

For starters, it will help the U.S. reach its goal of net-zero by 2050.

When you consider manufacturing, nuclear is actually three times cleaner than solar and about as clean as wind.

Energy Information Administration

(Source: The Intergovernmental Panel on Climate Change.)

Nuclear is also the world’s most reliable energy source.

It has the highest capacity factor. That means it produces maximum power more frequently than other sources.

And the comparison isn’t even close.

Capacity Factor by Energy Source in 2020

The low capacity factor of solar and wind make them heavily reliant on battery storage.

After all, the wind doesn’t blow and the sun doesn’t shine all of the time. So the energy has to be stored.

Battery storage is expected to grow 30X by 2035. But there still won’t be enough to service all of the world’s energy needs.

This makes nuclear vital to the clean energy transition.

Investors Are Already Bidding Up Nuclear Stocks

One issue for nuclear power is its cost.

It’s not the cheapest source of electricity. But it’s cost competitive.

As of 2020, projections had nuclear at about the same cost as natural gas. And it costs less than coal and offshore wind.

But nuclear is now cheaper than all fossil fuels, since the cost of natural gas has more than doubled since the report was released.

Lifetime Cost of Electricity in U.S.

(Source: International Energy Agency: Projected Costs of Generating Electricity 2020.)

Considering the benefits of nuclear energy, it’s not surprising the world’s richest people support it.

Billionaire Jeff Bezos backed General Fusion. It’s a private nuclear energy company that raised $130 million in November.

Just last month, Tesla CEO Elon Musk called for countries to restart dormant nuclear power stations. He also said they should beef up capacity at existing ones.

Investors are already following their lead.

They bid up uranium and nuclear stocks 47% over the past year.

Solactive Global Uranium & Nuclear Index

(Source: Bloomberg.)

With the Russia tensions serving as a catalyst, uranium and nuclear stocks could break out even higher.

To get exposure you can buy the VanEck Uranium+Nuclear Energy ETF (NYSE: NLR).

The majority of its holdings are U.S. companies.

So it’s a great way to invest in America’s energy independence.

Check Out Ian King’s “Breakout Stocks Summit”

Nuclear stocks aren’t the only ones undergoing a major catalyst.

In his new presentation, Ian King highlights one industry with an abundance of catalysts.

These are specific events that can send individual stocks soaring.

To learn more, you can watch Ian’s presentation now by clicking here.

Regards,

a black and white drawing of a hand with a long pointy point

Steve Fernandez

Research Analyst, Strategic Fortunes

Morning Movers

From open till noon Eastern time.

Jumia Technologies AG (NYSE: JMIA) operates an e-commerce platform in Africa, Portugal, Germany and the UAE. The stock rose 27% after it announced a partnership with UPS where UPS would use Jumia’s last-mile logistics capabilities and infrastructure to grow its delivery services in Africa.

 

Twitter Inc. (NYSE: TWTR), the social media platform, is up 25% this morning. The stock jumped on the news that Telsa CEO Elon Musk has acquired a 9% stake in the company, making him the largest shareholder.

 

LianBio (Nasdaq: LIAN) develops and commercializes medicines for cardiovascular, oncology, respiratory and other diseases in China. It is one of the Chinese stocks that is up 23% after China’s regulators signaled a change in audit-rules so that U.S.-listed stocks would conform to SEC requirements.

 

Gracell Biotechnologies Inc. (Nasdaq: GRCL) discovers and develops cell therapies for the treatment of cancer. The stock is up 20% after analysts at BTIG initiated coverage on the stock with a buy rating and set a price target of $18.

 

Dingdong Ltd. (NYSE: DDL) is a Chinese e-commerce company that delivers groceries. It is another Chinese stock that is up 19% as fears of delisting Chinese stocks in the U.S. eases, with the new audit-rule proposals from Chinese regulators.

 

Nuvve Holding Corp. (Nasdaq: NVVE) provides electric charging solutions and develops and commercializes vehicle-to-grid (V2G) technology. It is up 19% on a rebound after a brief sell-off following a fourth-quarter earnings miss.

 

Clovis Oncology Inc. (Nasdaq: CLVS) acquires, develops and commercializes anti-cancer agents. It is up 18%, continuing its uptrend from last week when it announced positive trail data from the study of its ovarian cancer treatment candidate.

 

Bilibili Inc. (Nasdaq: BILI) provides online entertainment services for the young generations in China. It is yet another Chinese stock that is up 17% today as Chinese regulators take steps to ease delisting fears in the U.S.

 

Futu Holdings Ltd. (Nasdaq: FUTU) operates an online brokerage and wealth management platform in Hong Kong and internationally. It is up 16% partially due to the rise in Chinese stocks today, and partially because one of its subsidiaries achieved record user numbers on its trading platform.

 

Red Cat Holdings Inc. (Nasdaq: RCAT) provides hardware and software products, services and solutions to the drone industry. It is up 15% after a NATO member country purchased 15 drones from its subsidiary Teal Drones for deployment in Ukraine.

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