Mike L

The Inflation / Deflation Debate and China's Commodity Carry Trade

Wow, let's just look at anthony's final paragraph about UNG for an example of how to treat the rest of his cobbled up screed. He states UNG is at rock bottom and has no more downside risk...and since he wrote this, it has collapsed horrifically and has much further to fall! Indeed, just about everything he predicted has gone in the opposite direction, or was flat wrong...(consistent with his previos track record of course).. and he has no idea what is meant by 'counter party risk'..which he ascribes to SLV, which holds silver bullion to fully back its ETF...yet he recommends UNG which has terrible counter party risks! as has been evidenced by its price action. Just see this excerpt for example re UNG, and you will see all you need to know about 'mark anthony's' credibility.

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UNG

Words like 'desperate' and 'counter party risk' are not what you want to see in what you invest in..

stocks.investopedia.co......

....The fund has also, for all intents and purposes, reached its position limits set forth by the CFTC, all but deeming UNG a closed-end fund due to its inability to issue new shares. The lack of new shares has led UNG to trade at an almost unheard of premium of 11% over its NAV.

Swaps
In a desperate maneuver to create more units, UNG's managers entered into a $250 million over-the-counter swap contract in July, and recently announced that they had also entered into a $500 million natural gas total return swap. By entering into these swap contracts, UNG has added significant risk to shareholders by introducing a large amount of counterparty risk into the equation. It's a desperate move by a desperate group.