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Natural Gas Unnatural Rise

I am reading lots of buzz all over the Internet on the rising prices in oil and natural gas assets and I am like here we go again. Yes, oil and gas stock are good investments but we are not running out of oil nor natural gas anytime soon. However, many investors are snapping up oil and gas ETFs like delicious hot pancakes. For example, the recent surge in investor demand for the US Natural Gas Fund, whose net assets has swelled 10 fold as investors snap up the shares, has almost caused the fund to temporarily shut down twice due to lack of shares to sell.

There is no reason to load up on oil and natural gas stocks or ETF gas funds yet. Read the recent short term energy report from the Energy Information Administration- Official Energy Statistics from the US Government. The US Gov't is projecting lower demand and lower prices- a possible supply glut. Just in case you still believe that oil and gas stocks are the way to go, here are three natural gas ETFs that you may find interesting; as a reminder they are all sucking wind- I mean gas.
  1. United States Natural Gas Fund, LP (NYSE: UNG)
  2. First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG)
  3. Claymore Natural Gas Commodity ETF (Toronto: GAS.TO)

Even though investors are pouring tons of money into them, they are all still down -50% or more since their inception. Of course, with the operational success of these three ETF funds, there will be more on the way from many other ETF sponsors this year.

If you are interested in trading ETF funds or have a question concerning these funds call us for a free no cost consultation at 770-572-2715. Please note: You should seek professional advice before implementing any of the strategies discussed herein, since: (1) The strategies are general in nature and will not apply to every situation; (2) Other opportunities may be better suited to your particular needs; and (3) The rules and regulations are constantly changing.

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