Dear Eoin, Why do you think the Uranium Miners ETF you have been holding has been disappointing of late? Is it all about "risk-off" and withdrawal of liquidity from the market? What makes you continue to hold? What would make you sell? Thanks! Kind regards, 

Eoin Treacy's view

Thank you for this question. I don’t see how the promise of electrifying the economy is possible without a nuclear renaissance. The fact the sector is not performing better suggests the critical mass of support for the industry is not yet mature enough. Significant resources are being ploughed into the small modular reactor sector but the lead times are long and there is not enough urgency to ignite investor interest in the short term. That’s why I believe it is underperforming at present.
The big question is what will change that situation. The arms race during the Cold War ensured reactors were built regardless of public opinion. That was a major catalyst for growth. China's building program in the last decade was the primary rationale for the bull market in the uranium mining sector. On this occasion, the potential for sanctions on Russian nuclear fuel exports is the clearest near-term bullish catalyst. It is not likely in the short term, but the longer the war in Ukraine persists, the more likely it becomes. That uranium miners offer optionality on that potential outcome.