The risk of a collapse of the European economy due to a sudden lack of supplies of cheap Russian energy is growing. However the aforementioned risks do not exist for North American stocks. Today I will discuss how to convert European risks into U.S. gains in the stock market.
The U.S. Benefits From Russia-Ukraine War
On the contrary, the U.S. is the biggest beneficiary of the current energy crisis, having just inked the best gas deal in its history with Europe.
U.S. gas companies are making the billion-dollar deal of a lifetime with surplus liquefied natural gas (LNG), which is being shipped to Europe on a massive scale. And they’re getting excellent prices on the LNG, as Focus reported on December 29 (i.e. BEFORE the current Russia sanctions). In the meantime, things have become even more advantageous for the U.S. gas industry.
At the same time, the U.S. has a secure supply from its domestic sources. Therefore, worries about new price volatilities there are baseless. The recent correction on the U.S. stock market also seems to have subsided in the meantime.
How To Convert European Risks Into U.S. Gains
Gold and uranium shares profit directly from the development. These act as a kind of insurance against the European emergency.
Gold is likely to gain further as a crisis currency in the event of a further escalation of tensions between the West and Russia. And uranium too, because more and more countries are realizing that they need to get away from expensive oil and gas. But that the fluctuation-prone energies of the Middle Ages (wind and solar) are not suitable as the sole substitute in our latitudes.
Will Uranium Be The New Gold?
For most countries, nuclear power is the only option. The Sunday Telegraph recently reported that Great Britain has just decided to build seven new nuclear power plants. London wants to push its energy independence.
Other countries want the same. Worldwide, we will see the number of nuclear power plants double in the next 20 years. Of course, the uranium price will then (further) go through the roof. Therefore the price of our uranium shares should rise further still!
Therefore, take advantage of any setback in our uranium favorites to buy or add to your position. It’s a simple way to turn European risks into U.S. gains.