To: russet who wrote (6399 ) 1/7/2007 10:16:03 PM From: insitusands Respond to of 30233 Russet, I absolutely agree with the fact that as energy costs increase, the market, society etc. will respond with efforts to become more efficient and that headway will be made thereby. I'm quite sure that most if not all on this thread would agree. However, there are two implied assumptions in your discussion. One, that the world can become more energy efficient faster than the rate at which crude oil production depletes. (Although I see no discussion on this thread re: peak oil, it is THE backdrop that makes U308 such a compelling story. If there were no legitimate fear of a permanent drop in crude production, there would be much less interest in these companies. Yes I know the uranium story is powerful in its own right but it is still heavily and positively influenced by peak oil. I'm assuming therefore that most on this board take it as a given that peak oil is either a reality or bears sufficient study to warrant investing in energy alternatives.) Two, that after the next slowdown, whenever it may occur, all will be fine again (due to decreased energy demand) and a new recovery in economic growth can proceed forthwith which would allow for continued population and/or standard of living growth. Personally, I hope that this is indeed the case but as a believer in peak oil and its concomitant relentless depletion I fear that it is not. Therefore, it will be extremely difficult for the world to consume less energy on a permanent basis, whether it suffers through one recession or many. I'm sure that I need not remind you of the exploding population and rapidly increasing standard of living in Chindia to bolster my point. All this is not to say that a slowdown will not hinder investing in these companies. It probably will and may do so soon. But it won't be long lasting. Unlike the tech boom we are experiencing a true and very powerful paradigm shift. This new paradigm, energy shortage, will influence economic cycles and markets to behave in different ways than they have in the past. When it comes to our personal investing, not to mention our personal life, I think we all must be cognizant of avoiding the old generals mistake of "fighting the last war".