Uranium stocks and the Global X Uranium ETF (NYSEArca: URA), which tracks uranium miners, have been a more than four-year slump since the 2011 Fukushima disaster in Japan. That slumped continued in 2015 as highlighted by URA’s nearly 39% year-to-date tumble.
With 2016 nearly here, URA heads into another new year with some bullish forecasts. The question is whether or not next year will bring different, more positive outcomes for the ETF and uranium stocks than the past several years.
Earlier this year, URA and its components got a modest lift after the Kogoshima District Court rejected a legal bid to block the reopening of the Sendai nuclear power station due to safety concerns on Wednesday, reports Kentaro Hamada for Reuters.
The Sendai plant will be the first to reopen since Japanese nuclear stations were shutdown in response to the devastating earthquake and subsequent disaster in Fukushima. The reactors could begin operation as early as June.
In response to the fallout, anti-nuclear activists have aggressively petitioned courts to block restarting the plants. Nevertheless, the court’s response may reflect more favorable opinions in some areas. [Good News for the Uranium ETF]