Natural Gas is looking pretty good for a long term buy
Jun 07, 2023Natural Gas is a commodity that has been beaten up badly and is at an all-time low. I do see Natural Gas eventually recovering and putting in new highs. Picking up this position at an all-time low could over time equal nice profits. "buy low sell high".
UNG- is an ETF ticker for natural gas. You might want to start slowly building a position using a DCA (dollar cost averaging) strategy. Don't buy this just because i am bringing it up on FB. Make sure this aligns with your overall financial objectives. Ask yourself if natural gas is worthwhile commodity that will continue to increase in demand.
Natural Gas has the makings of "the perfect storm" trade. When a commodity has been beaten up, has political tensions, natural disasters, supply issues, etc.
We seen this happen to lumber in 2020. Lumber had all the elements of a perfect storm trade. Lumber was my first experience with the perfect storm. I studied other commodities and have noticed about every 3 or 4 years we have a major commodity that explodes in price producing a perfect storm trade.