Thought Leadership in Real Asset Investing

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Companies that own nuclear reactors have been the biggest beneficiaries of rising demand for nuclear power for most of this year. That includes Constellation Energy and Vistra, whose stocks have more than doubled this year.

Now, a new group of nuclear stocks is beginning to rise—companies that are designing, building, and fueling new kinds of reactors. That includes NuScale Power, Oklo, BWX Technologies, and Centrus Energy, and their ascent may just be getting under way.

In the face of economic instability and changing market conditions, investors are becoming more inclined to explore alternative assets as part of their allocation strategy. 

Most investors construct their portfolios by allocating their investments to traditional assets, such as equities, fixed-income securities, and liquid funds. These can offer both growth and a degree of diversification. Nevertheless, certain investors pursue diversification that extends beyond these traditional asset categories.

The environmental and energy policies anticipated under President-elect Donald Trump will substantially differ from those of the Biden-Harris administration. The energy sector, for example, rose sharply the day following Trump’s victory, with the Energy Select Sector SPDR Fund (XLE) rising over 4% on optimism about fossil fuel investments under Trump’s expected pro-oil and gas policies. In contrast, shares of renewable energy businesses declined dramatically across the board.