There was a time when nuclear power and the exchange traded funds (ETFs) that track it were perceived as horrible and horrific sources of power, but things have changed.
There has been a huge turnaround over the past few decades and the perception of nuclear power and energy is no longer so negative. Many believe that this shift has been caused by the industry’s focus on safety, safety measures and disposal of hazardous material, states Danielle Karson for Marketplace.
What’s amazing is that in a Gallup poll, 60% of Americans stated that they support nuclear power. Additionally, the once frowned upon source of power accounts for 20% of the nation’s energy. To put in perspective where the industry is going, 17 companies have applied for permits to build new nuclear plants.
Keep in mind that it isn’t all sunshine and smiles in the industry. The costs of building new plants is prohibitive and disposing and storage of radioactive waste is far from easy. To add to these problems, President Barack Obama has scaled back funding a nuclear plant in Nevada, which indicates that it isn’t one of his top priorities at the moment.
If you want to grab some exposure, take a look at the Market Vectors Nuclear Energy ETF (NLR), which is down 10% year-to-date, but has crossed its 50-day moving average.
Kevin Grewal contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.