Topic: How To Invest

What is Pat’s commentary for the week of March 12, 2013?

Article Excerpt

Natural gas stocks were slow to join in the 2007-2009 market decline. Most other stock groups hit a peak by the fall of 2007, then began to slump. Shares of natural gas producers kept rising until the spring of 2008, and only then turned downward. The broad market downtrend ended in the spring of 2009, and stocks generally began to rise. But natural gas stocks, latecomers to the decline, kept on moving sideways to downwards. They remain within that sideways-to-downward trend today. Most investors understand why these stocks went down and continue to fall. It’s because the natural gas industry developed techniques that cut its costs and let producers initiate or expand gas production into vast new areas. As a result, natural gas output shot up, without any matching rise in natural gas demand. In addition, we experienced a series of warm winters. This cut into gas used for winter heating, and that’s a major part of total gas use…