A Trillion-Dollar Recession-Proof Trend (and How You Can Play It)

There’s a massive opportunity in the commodities space that most investors have missed.

We’re not talking about gold here. The yellow metal has been all over the headlines both in the mainstream media and in alternative financial sources.

In other words, the gold bull market is nothing new.

But there is another one, and it doesn’t get nearly as much attention.

Right now, investors are focused on the global tariff war… and stock markets are tanking…

This may continue for a while. Here’s what we expect to happen in the near term.

(In a moment, we’ll share how investors should navigate this crash.)

Prepare for a Global Economic SLOWDOWN

As of writing, the White House has just announced a package of “reciprocal” tariffs. The idea is to fix the “imbalances” in global trade that put the US at an economic “disadvantage.”

China retaliated with a 34% levy, which triggered the White House to threaten an extra 50% tariff.

Well, we’re not going to argue about the soundness of this policy.

Let’s talk about its consequences instead.

First, prices will go up, and the US will not be an exception. US consumers already feel uneasy. Their inflation expectations are at a 32-year high, according to the University of Michigan consumer survey.

Buying US-produced goods instead of foreign-made ones won’t help, either. To begin with, pretty much everything manufactured locally is more expensive than its foreign-made counterpart. So, people will pay more for the same regardless of where it was produced.

Second, unemployment is likely to go up. It has already started rising, according to the February 2025 figures, and this trend could continue. Government layoffs are just one part of the story. Businesses that will now have to deal with higher input prices will be less likely to hire new staff and may lay off their current personnel.

This won’t be good for the economy at all. Employment and consumption drive the US GDP.

In other words, prices will almost certainly go up, but the country’s economic growth could stall or even dip into negative territory.

This is called stagflation, and it’s one of the worst things that could happen to the US economy.

Richard Clarida, global economic advisor at the investment management company PIMCO, recently said that there is already “a whiff of stagflation” in the US.

We don’t see any signs of easing trade conflicts or promising pro-growth policies coming out of the White House, so the stagflation trend could continue for months—or even years.

What should investors do?

Follow This Unstoppable Trend

When an economic slowdown happens, governments try to spend their way out of trouble.

And one of the premier destinations for their investment is infrastructure.

These days, we would argue that energy infrastructure is one of the most important pieces of the economy. Specifically, clean energy.

In fact, we would expect investment (both private and public) in energy infrastructure to soar during the coming stagflation period.

And energy-related companies may prove to be more stable investments than the tech-heavy S&P 500 and NASDAQ. (Not to mention the latest AI craze.)

Recent numbers back up our conclusion.

Governments around the world are putting TRILLIONS of dollars into the global energy transition.

In 2024, they invested $2 trillion dollars in this space. Notably, China invested the most and drove most of the growth last year.

What does it mean?

It means that while the US is waging war on pretty much every single one of its trade partners, there are other MASSIVE markets for clean energy—and they are hungry for the commodities and technologies that make it happen.

And nuclear energy infrastructure is a key component of this trillion-dollar trend.

Investment in nuclear energy was estimated to reach $75 billion in 2024, up 50% from the average investment rate of $50 billion a year between 2017-2023, according to Statista.

In 2025, investment in nuclear could soar by two-thirds to about $125 billion.

This year, nuclear power generation is expected to reach an all-time high, too.

In other words, hundreds of billions of dollars are flowing into this trend.

Yet most investors don’t think too much about it.

Well, you don’t have to be one of those investors who will jump on this trend too late.

And here’s an idea that we URGE you to put on your watchlist.

A Well-Positioned Global Uranium Play

One of the standouts in the global uranium space is a development-stage company called GoviEx Uranium (TSXV:GXU, OTC:GVXXF).

The company is focused on its Muntanga project, which is located in Zambia, a stable and pro-business jurisdiction.

Here’s what’s special about this project…

It’s an advanced-stage property that not only has a defined and NI43-101-compliant resource… (Although that alone is a massive achievement.)

The project’s Measured and Indicated resource includes 50.4 million tonnes at 359ppm U3O8 for 40 million pounds of U3O8.

Its Inferred resource includes 12.8 million tonnes at 263ppm U3O8 for a total of 7.4 million pounds of U3O8.

The company has also finalized a feasibility study (as a reminder, a feasibility study is like a business plan in mining parlance). And the study’s results were impressive.

The project’s net present value (or NPV) stands at USD 243 million. It features a low total operating cost of USD 32.21 per pound of U3O8.

As a reminder, the current price of uranium is about USD65 per pound, which leaves the company with a healthy 50% margin.

(This margin, of course, could increase if the price of uranium goes up. Companies like GoviEx Uranium (TSXV:GXU, OTC:GVXXF) are “leveraged” to the price of the underlying commodity.)

The project has a short payback period of a little under four years and a modest capital requirement (or capex) of USD 282 million.

The project’s life is estimated at about 12 years based on just two out of five existing deposits. In other words, its actual life (and net present value) could be much higher than what’s identified in the feasibility study.

Better yet, the company is priced at a bargain level. Its current market capitalization is about $28 million, or just 12% of the project’s net present value.

(We have to mention here that there is no guarantee at this point that the project will become a mine or will be able to realize its net present value. Investing in mining juniors involves risk.)

Given the current economic situation, GoviEx will have the flexibility to ship its potential future uranium production either to the West or to the East.

This is one of the critical components of its business model. In our view, it may help GoviEx become a leading uranium supplier with a geographically diverse customer base.

The project remains open for expansion, and the company is well-capitalized to continue its exploration and development at Muntaga.You should watch this story: GoviEx Uranium (TSXV:GXU, OTC:GVXXF).

Click here to view the company’s investor presentation.

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