Michael Burry’s Next Big Trade
By: Armchair Banker
Tags: Climate Change, Green Energy, Environment, Investing, Stock Market

Image Source: BNN

Michael Burry came to fame thanks to the book and later movie The Big Short. He was one of the few investors who saw the 2008 housing market crash coming and shorted the whole housing market. While many mainstream academics, economists, and even Wall Street did not see the crash coming, few traders made a killing off the collapse of the housing crash, and Michael Burry was one of those traders.

Michael Burry has been on another winning trade this year. While many big hedge funders were short GameStop Michael Burry was long on the brick and mortar retailer. Michael Burry was one of the institutional investors who made a killing off the GameStop saga. Now Michael Burry is eyeing another sector: Uranium.

Michael Burry has been investing in the environment and natural resources for years now. At the end of the movie Big Short (Spoiler Alert!), it was revealed that after shorting the housing market he was investing only in Water. Obviously, he is still a value investor investing in retailers like GameStop and Bed Bath and Beyond. But now he is getting into the hot sector of Uranium.

Uranium is Hot and Why You Should Get In Now

I was bullish on Uranium since 2018. As climate change becomes the focus for the world and countries want to reduce carbon emissions, countries are going nuclear. The European Union has pledged to go carbon-free by 2050. The EU sees nuclear energy as key to attain this goal. European leaders have spoken very favorably about nuclear energy. Many European countries already get at least 30% of their energy from nuclear (60% in France) and this will only increase so that the continent can go carbon-free. It is not only Europe that has pledged to be carbon neutral.

China has made climate change and going carbon neutrality a priority. It is no secret that China is investing in renewable energy, EV and related technologies, and other green technologies. For China, nuclear energy is key for its green energy ambitions. China is poised to take over the United States as the world’s leading nuclear energy generator and supplier.

It’s especially a great time for American Uranium miners and explorers. The Biden Administration has already joined the Paris Climate Accords and has made green energy and climate change a priority. With backing from the progressive wing of the Democratic party and calls for a Green New Deal expect more investment into green energy. The US Senate also approved the Under the Act, which will restrict the US Department of Energy to only source Uranium only from facilities licensed by the Nuclear Regulatory Commission or its state regulatory affiliates. This excludes facilities controlled by Chinese or Russian entities. This is such great news for American Uranium miners like Uranium Energy Corp (Ticker: UEC) and Energy Fuels Inc. (Ticker: UUUU).

As the chart shows Uranium spot prices have gone up over the year.

Uranium Spot Price Over a Year. Image Courtesy: Y Charts

Uranium miners like Uranium Energy Corp, Energy Fuels Inc., and Denison Mines (Ticker: DNN) have soared over the years.

I truly believe that it is only the beginning for Uranium. As the world goes green the demand for nuclear energy will increase. Bill Gates, Jeff Bezos, VC legend Vinod Khosla, and former energy trader John Arnold are all betting big on Uranium. As Uranium goes big one stock to look out for is Uranium Energy Corp (UEC). As a junior American Uranium miner and explorer it is set to explode thanks to the Biden administration encouraging Uranium exploration in the US. UEC is also run by a veteran in the Uranium and mining business Amir Adnani. Amir Adnani is praised by veteran mining and energy analyst and fund manager Marin Katusa and Sprott Asset Management’s US head Rick Rule. Rick’s fund Sprott Asset Management already owns UEC. Other recent buyers of UEC also include Ken Fisher of Fisher Investments and asset management giant BlackRock. UEC is one of my largest portfolio holdings and I truly believe that the stock will explode. I do advise that for anyone investing in UEC keep in mind that this is a junior mining stock and expect a lot of price volatility. I am truly bullish about Uranium and we are only at the beginning of this massive bull market!

It is no surprise that Michael Burry wants in on this next big Bull run.

What I say here is not investment advice. I write these for informational and educational purposes. Investing involves risk. Please consult a professional before investing. Investing involves risk.