Natural gas is super cheap today, but it could get cheaper before the cycle is over. There is an abundance of it. U.S. storage capacity is almost full. If excess production does not drop before capacity fills up, the price of natural gas is likely to weaken. Natural gas is out of favor. The momentum crowd is bailing out, driving prices below the cost of production. Smart successful investors move against the crowd. You want to be a buyer when everybody else is selling. Long term, today’s depressed natural gas price is unsustainable. It has to rise. Gas is cheap, clean, and available in significant quantities in the U.S. There is no reason the U.S. can’t use natural gas to generate more of our electricity or even power our automobiles. In addition to covering commodities, Young Research’s Global Investment Strategy covers corporate bonds, currencies, global equities, and special situations. Subscribers get access to an expanding chart library, periodic special reports, a litany of useful resources, and flash alerts. Please join us.
Jeremy Jones, CFA
Latest posts by Jeremy Jones, CFA (see all)
- After Long Declines, Branded Consumer Companies Comfortable Raising Prices - February 15, 2019
- Can You Rely on Income Funds? - February 14, 2019
- Brazil’s Finance Minister Defends its ‘Vibrant Democracy’ - February 13, 2019