bigbuilder13

Natural Gas: The Next Big Thing

It seems to me that there is a great disconnect between long term fundamentals and short term trading. I have made more money with NG than I have lost so I am sort of hooked on NG as an investment. However, I fear that forces beyond my control could whipsaw the markets for NG and the stocks of the E and P firms. Therefore, I am essentially out of the market for the time being.

I wonder why someone has not looked at using cheap NG as a power source for the conversion of coal to diesel. I know there is a way to make oil (and its byproducts) from coal; the Germans did it in WWII. IF the wind power and cheap NG of the Rockies were applied to create electricity, then that power could convert cheap western coal to diesel and provide domestic fuel for trucks and cars. There would be no need for a huge investment in electric grid; the diesel would move by pipeline. Just a random thought; guess the economics won't work...if they did, others would be talking about it.

Natural Gas Is Heading to 1997 Levels, Should Stay There Awhile

I wonder what effect, if any, there will be from the supply side in Russia. I have read a few things about the decline in Russian production and the need for vast amounts of capital to develop new gas fields in the Arctic region. IF there is an inability or unwillingness to provide the $$ needed for such new E & P in Russia, will that affect the supply available for Europe and potentially divert the LNG from Asia?

Also, what about LNG demand potential for China and India. Is that relevant at all in the short or intermediate term?

Finally, what about NG as a substitute for gasoline? Too far fetched? Seems very economic as an alternative.

Finding Outperformers in a Pay-As-You-Go World

Seems to me that in a market that was flooded with buyers for stocks, the general rule was to buy on dips in the averages and sell the rallys.

If the marked is now flooded with sellers, we should short the rallys and buy on the dips.

Am I missing something?

Home Ownership: The Ideal That Refuses to Die

Ownership of real property, a home or anything else, is simply a tool to meet a need. Needs differ and budgets differ. Renting and ownership have their place. The excessive emphasis on ownership was driven by the vested interests in selling real estate. This was enhanced by the recent history of easy money from appreciation. Finally, many people satisfy their ego needs by displaying wealth. Fancy houses were a way to do that.

All has now changed. We squandered trillions on "investments" that really were consumption. Now our capital is idle in assets that consume $$ and do not produce income (unless you rent out the spare bedrooms). That capital is lost. Now we must rebuild our capital in a productive way. To do that we must cut back.

Sadly, the politicians will say where we invest in the future. They will justify directing $$ into the sectors managed by those who give campaign contributions. But they will have a good cover story. And some call this a "free market".