Is Nuclear Fusion Something You Should Look Into For Future Investing?


The Future is Here?

Everlasting clean energy. The one renewable energy source that is abundant, doesn’t pollute the environment and doesn’t release toxic levels of radioactive waste. The power that fuels our sun. Nuclear Fusion. After decades of research, scientists have reached a milestone in the future of energy. On December 5th, they created a nuclear fusion reaction.

I’m Chris Perras, Chief Investment Officer with Oak Harvest Financial Group, and this is our investment team’s mid-week release when we examine a news item, headline, or story making the rounds from publicly available sources and ask, “Is it News or Noise?” for your money. This week we give our thoughts on if the recent successful nuclear fusion announcement is the holy grail for global clean energy in your investment horizon.

Here is the quick and direct answer to whether an investor should spend a moment’s time on this one. No. Don’t waste your valuable research time, energy, or your money. Yes, in recent years, private equity investors have invested close to $5 billion in fusion venture capital start-ups; however, I believe this “story” received oversized financial news press because of the growing backlash against clean energy investing, its costs versus fossil fuels, and its lack of reliability which has been contributing to much higher energy bills for consumers over the last few years.

From an intellectual and scientific standpoint? This is an amazing topic. Two weeks ago, after working on the problem for 50 years, scientists recreated the power of the sun, Fusion. They produced a reaction that net, created new energy. Yes, they created more than the sum of its parts. In the experiment on December 5th, about two megajoules went into the reaction, and about three megajoules came out, said Marvin Adams, Deputy Administrator for Defense Programs at the National Nuclear Security Administration. That’s a 50% gain.

The Department of Energy’s lab fired 192 lasers at a tiny hydrogen pellet. The lasers heated the pellet, causing it to implode (not explode), fuse into helium, and release a spike of energy. The result was nuclear Fusion producing about 50% more energy than used to fire the lasers. Eureka, all the world’s future clean energy needs are only a few years away?!

Investors, don’t hold your breath. While scientifically relevant, this test of course was done in an unrealistic lab setting, funded by? Yes, you the tax payer. In a virtually unlimited manner. Spoiler alert, they have been able to do this exactly once? Those 192 lasers within the Department of Energy’s facilities take up a space as large as three football fields. That doesn’t scream commercial availability any time soon.

If you watch much mainstream TV, you are likely to hear more and more about Fusion over the coming decade because if Fusion was ever achievable on a commercial scale, it would solve many current environmental issues found with fossil fuels. Fusion reactions don’t produce carbon emissions. And it does not produce nuclear waste associated with our current nuclear reactors. But is this happy talk of nuclear Fusion relevant to your existing investments, energy or otherwise? Sorry to tell you, not a chance.

Are you trying to meet your needs or your greed’s in retirement? Give us a call here and schedule an initial consultation with an Oak Harvest Advisor. We will sit down with you and help you and your family do the math to figure out if you will be able to meet your retirement goals and needs.

At Oak harvest, we think our clients are best served by us helping them plan for their future needs instead of focusing on the past. The future is always uncertain, and that’s why our advisors and retirement planning teams plan for your retirement needs first and your greed second.

Give us a call to speak to an advisor, and let us help you craft a financial plan that helps you meet your retirement goals. Call us here at (877) 896-0040, and schedule an advisor consultation. We are here to help you on your financial journey into and through your retirement years.

I’m Chris Perras and from everyone here at Oak Harvest, have a blessed week.