News to Sarah Palin: The Middle East Goes Nuclear

Written By Brian Hicks

Posted November 21, 2010

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.


This may come as news to Sarah Palin, but the nuclear genie has been out of the bottle for a long, long time.

The “mad mullahs” of her nightmares are just the tip of the iceberg.

All across the oil-rich Middle East, Muslim nations besides Iran are about to go nuclear as well.

You see, the power of the atom works the same everywhere it’s tried — even if it keeps her up through a long Alaskan night.

That’s true, no matter how many planes you send to bomb it.

A nuclear Middle East

Like it or not, a Middle East with a nuclear-powered future is one that cannot be stopped. Not even in Iran.

Because while these countries may be flush with oil, the same is not true for natural gas. The primary source for electricity generation, natural gas production in the Middle East has begun to lag — opening up the door for nuclear power.

So while Iran works to start up its long-dreaded plant in Bushehr, 12 other countries in the region are taking steps toward joining them: Saudi Arabia, Syria, Kuwait, Qatar, Morocco, Algeria, Tunisia, Egypt, Lebanon, and United Arab Emirates are among them.

And according to the World Nuclear Association, at least 15 new reactors are expected to be built in the volatile region by 2025.  

Even the often violent African nation of Sudan is on the list. A noted ally of Iran, the troubled nation announced in August it intends to build a nuclear reactor for peaceful purposes by 2020.

The driver for it all is increased electricity demand as places other than the West continue to modernize. That increase takes more power — even in places with an abundance of oil.

But this trend is hardly confined to the Middle East…

Around the world, nuclear energy is experiencing a global power surge. Worldwide, 52 reactors are already under construction — with 344 more reactors planned.

That’s almost four times the number of reactors already producing 20% of the power in the U.S. With 104 sites, the U.S. operates the largest fleet of nuclear power plants in the world.

That also includes plants being built in Korea, where our own Nick Hodge has set his sights on another big nuclear power winner.

Three power plays

And you can expect this trend to continue. According to the International Energy Association (IEA), world electricity demand is likely to grow 2.7 percent a year from now until 2015, and then at 2.4 percent annually until 2030 — giving this nuclear bull market an even bigger boost.

For investors, that means following a growth trend that is already firmly in place in the rest of the developing world.

And here are three easy ways to ride this wave with investments in nuclear-weighted exchange traded funds (ETFs):

  • PowerShares Global Nuclear (NYSE: PKN) — This broad-based ETF includes nuclear holdings in reactors, utilities, construction, technology, equipment, service providers, and fuels. It normally invests at least 80% of total assets in the nuclear energy industry.
  • Market Vectors Nuclear Energy (NYSE: NLR) This fund is down off of its uranium-based highs in 2007; but with uranium prices now projected to go higher, this materials-weighted EFT is rising.
  • Global X Uranium (NYSE: URA) A newcomer, this ETF’s exposure is primarily in uranium. URA invests in global uranium miners, refiners, and equipment makers.

As for some other places to power up your portfolio, here are a few of the best investment ideas from the pages of this week’s top-read Wealth Daily and Energy & Capital articles.

By the way, we launched another free service earlier this week called the Wealth Wire. It’s an easy-to-read look all of the must-see financial news compiled everyday by our editors. To learn more about the Wealth Wire, click here.

Have a great weekend.

Your bargain-hunting analyst,

 steve sig

Steve Christ
Editor, Wealth Daily

Golden Profits: How to Double Your Gains
Editor Luke Burgess reveals a little-known way to profit from the rising price of gold. He’s has dubbed this unique investment “Gold’s Doubling Effect” because it pays twice as much as other investments.

The ‘Do Not Buy’ List: Don’t Touch This Junk
Editor Steve Christ takes a look at what passes for “security” at the nation’s airports adding this sector to his Do Not Buy List.

Time to Short Treasuries Yet?: In Time, Every Ponzi Fails
Analyst Adam Sharp explains to readers why, in a world where attractive investment options are lacking, shorting treasuries is looking better by the day.

Sixty-four Percent Short: The Biggest Short in the World, GM, T. Boone, and More
Editor Chris DeHaemer talks about Chinese ghost towns, the most shorted stock in the world, T. Boone’s being blown away, and asks if GM will survive…

Biotech Breakthrough: The Last Flu Shot You Will Ever Need
Editor Steve Christ takes a look at a ground-breaking new vaccine technology and explains how it could make your portfolio — and your immune system — 1,000 times healthier.

Sorting Out the Peak Oil Confusion: Peak Oil Reality
Editor Keith Kohl sheds more light on energy clarifying several misconceptions about peak oil.

Solar Stock Blockbuster: This is the Only Solar Stock You Need to Own
Editor Jeff Siegel discusses new developments in the solar market and reveals his next solar blockbuster.

Unconventional Oil and Gas: A Tale of Two Fuels
Editor Nick Hodge discusses an official peak oil statement by the IEA, and how to profit as new fuels grab the spotlight.

Clean Coal Reality: How I Pissed Off a Room Full of Environmentalists
Editor Jeff Siegel offers his take on cap-and-trade along with clean coal.

Gold Prices to Rise Through 2010: World Gold Demand to Remain Strong Through the Year
Analyst Luke Burgess explores the rising global demand for gold and discusses triggers and factors that could set prices on a course to $2,500 an ounce.

The United States of Debt: Just Say No to Debt Dealers
Analyst Greg McCoach gives advice to Americans struggling with extremely high levels of debt.

Obama’s Halliburton: Owning GE is a No-Brainer
Editor Christian DeHaemer explains why owing this stock is a no-brainer.

The Government’s Stealing Your Energy: Direct & Indirect Energy Theft
Editor Nick Hodge takes a look at different ways energy is being stolen, sometimes even by the government.

Angel Pub Investor Club Discord - Chat Now

Brian Hicks Premium

Introductory