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​Trump “Arms Race” Comments to Benefit Uranium Suppliers?

Throughout his campaign, president-elect Donald Trump called for a larger, more robust military and, most recently, by stating his intentions of building up the US nuclear weapon base.

Much media attention is being paid to Trump’s remarks about an “arms race,” but is simply part of his philosophy of a “peace through strength” approach to US foreign policy. Earlier, Russian president Vladimir Putin asserted Russia’s need to “strengthen the military potential of strategic nuclear forces.”

In standard Trumpian style, he called out media members attempting to make more of a story out of his comments than they should.

Do Trump’s words signal any benefit to uranium suppliers? Likely not.

Both countries combined have enough uranium and plutonium to generate over 10,000 nuclear weapons, which shouldn’t increase the demand for uranium. Uranium Energy (UEC) moved up over 5% with the attention on Trump’s comments, but uranium (URA) as a whole has traded flat for the year due to fairly limited supply and demand dynamics.