Today I posted my two-hundred-and-forty-first YouTube video: Quick Pick U.S. Natural Gas Fund
Want to grow your portfolio and protect it too? In the toughest investing market in 40 years?
Grab my new eBook, Your Best Investing Strategy for the Next 5 Years: https://bit.ly/3XN2Edf
Today’s Quick Pick is United States Natural Gas Fund (NYSEARCA: UNG). The chart for UNG is horrendous, with a peak in August and a steady plummet after that. For 2022, the stock was up about 12%, thanks to late summer surges in price, as natural gas was bid up under the expectation that the war in Ukraine and sanctions on Russia would cause Europe to run out of natural gas. But year to date for 2023, it’s down 44%, as Europe proved better at replacing Russian gas than anyone had expected. As the end of winter approaches, European natural gas stockpiles are at about 65%–above normal for this time of year. UNG has a pattern of up years following down years–in 2020 UNG saw a 43% decline, and in 2021, a 35% increase. As the price of natural gas goes down, demand spikes as buyers look for the cheapest fuels and purchase more natural gas, which sends the pendulum swinging back upward for natural gas providers and funds that track the commodity. Between now and mid-March is a good time to get in on natural gas as we look for the upswing when China and Asia start looking at cheaper natural gas prices and Europe looks to get its stockpile back to 100%.
Here’s the link:
Add Jim on Social Media:
FREE EBOOK: https://www.jubakpicks.com/bear-marke…
I’m saying that you should buy it here because this is a good opportunity partially created by the huge sell-off. This is, to my mind, relatively common in commodity plays where the volatility can be enormous. Would I have preferred not to have ridden my profits on UNG down to this nasty loss? Of course. But that loss doesn’t mean you shouldn’t buy it now. (And get out on the upside this time.)
You didn’t mention that you added UNG to Jubak’s Picks on 6/17/22, and this position is now down 64%. So shouldn’t this post have been an update instead of appearing like a new position. This post makes it look like you are calling the bottom. Are your portfolios getting too big for you to keep track of?