Don’t Buy Nuclear ETFs | Roger Conrad
Nuclear power-related stocks – whether in ETFs or by themselves – have been hot lately. But energy analyst Roger Conrad says they’re overhyped: Very few companies with a strong focus on the nuclear theme are profitable, and incipient nuclear plants, while enjoying more government support than before, have tended to need more time and more money than expected.
The sector, in other words, is not as shiny as it looks. Roger explains why, and why he feels it’s a stockpicker’s market (versus a “buy everything” market) for nuclear-themed stocks.
Roger also thinks the Magnificent 7 stocks are overvalued – and, thus, it’s time to be wary of cap-weighted S&P 500 ETFs.
Click here or on the image below to watch:
Riverside.fm’s AI takeaways:
- Nuclear energy is a clean and reliable power source.
- The construction of new nuclear plants faces significant challenges.
- Independent power producers (IPPs) are gaining traction in the market.
- Market dynamics are influenced by regulatory challenges and competition.
- The Magnificent Seven dominate the market, raising concerns about concentration.
- Investors need to be patient and cautious in the nuclear sector.
- AI and data science are expected to play a role in energy development.
- The Inflation Reduction Act provides critical support for nuclear power.
- There is a risk of market correction due to overvaluation of major stocks.
- A diversified investment approach is recommended over ETFs.
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
