February 16, 2008
As some of you know, I am heavily invested in oil and gas royalty trusts (Canadian and U.S.), much more so than I would ever recommend others to do. I've lived through the highs and lows of oil and gas prices over the years and seen the share prices rise and fall with them, but the dividends were just too hard to beat. Even at today's prices, the dividends are still hard to beat. I selected a few in the "create your own portfolio" and if you can stomach the sometimes volatile nature of the share prices, the dividends just keep kicking out. If you are interested in knowing all the stocks I own in this sector, let me know and I can add it under the portfolio tab in IP.
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IT'S VOLATILE, BUT IT'S A BULL MARKET!
The "close your eyes and buy" uptrend in natural gas is making money for investors again...
After spending much of last year moving sideways, shares of natural gas producers are dominating the new highs list right now. We call them "close your eyes and buy" stocks because their underlying asset – natural gas – is in the most volatile bull market known to man.
Today's chart is the past five years in natural gas. In mid 2005, "natty" doubled to $15 in response to Hurricane Katrina... then collapsed to $7 soon after. The chart is full of similar wild moves. But stepping back, one can see a clear long-term trend: from the lower left to the upper right.
What's driving this trend is also driving the bull markets in coal, crude oil, platinum, wheat, and iron ore. Billions of Asians are now entering "consumption" mode and buying basic luxuries like televisions, computers, cell phones, and furniture. All this buying consumes gigantic amounts of raw materials... and it will "keep a bid" under commodity prices for years. Invest accordingly.
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