The Eurasia Group put out it’s annual report on geopolitical risks and the landscape.  They suggest this is a very unstable geopolitical climate.  They refer to it as a Geopolitical Recession.

The market agrees.  Since Donald Trump won the election, the Uranium ETF URA is up 30%.

ura

Large rally aside, technically this thing looks great.  The massive volume suggests that this is a legitimate bottom breakout in progress.  Over 15 or so URA could tack on another 30% in time.  The chart shows there is room to run.


If the market continues to price in the possibility of War, perhaps a new bid comes into resources/commodities.

The CRB index has based in a range for 7 months now.

crb

Last week commodities tried to sell off and couldn’t as the U.S. Dollar finally sold off.

All of this healthy basing has occurred while the dollar has ripped 11% off the June low.

usd


Looking at this practically, the U.S. has a President Elect that may well go on a power trip in his first 100 days in office.  We could expect this geopolitical recession and the bid in resources to continue for some time.