Do you want a simple high return investment that you can understand, can invest in easily, pay no management fees and have the chance over the next 6 months to make 50 100%? Then this article is for you. This investment is one a commodity where demand is set to increase dramatically and the commodity is natural gas which we covered here in an article at the weekend. An investment in gas is environmentally friendly, easy to do, diversifies your portfolio and can produce gains far in excess of your stock or mutual funds. Its a simple buy and hold strategy. Here is the background: High crude oil will drive natural gas prices higher Crude oil prices are expensive, natural gas prices are cheap. Many utilities are making the switch now to natural gas. With oil prices high natural gas pick up the slack Crude oil is affected by geo political concerns and the US is dependant on imports. On the other hand natural gas is produced domestically. Supply will lag demand Demand is on the move and at the moment supply exceeds it but not for much longer and this is hat will turn natural gas into a high return investment. New fields are not coming on quick enough, to replace old fields that are being depleted. In the short term we have the prospect of a very hot summer and increased demand for air conditioning as a result. We also have forecast one of the most active hurricane seasons on record. These short term events could make gas a high return investment even quicker than expected. Finally, this high return investment is ecologically friendly its clean and many people like this, so it is the fuel of choice for many. Investing in gas is easy At present prices are 50% below their recent highs, a bottom is forming and we expect prices to go higher. Trading the move You dont need a fund manager here; all you need is to get in the market with options to take advantage of this high return investment. Options offer you the prospect of unlimited gains with risk limited to just the premium paid. Investors therfore should buy at, or in the money options at current levels, with plenty of time value to expiry, to ride out short term volatility. A simple investment However, that does not mean that this one will not become a high return investment! Consider the facts above and decide for yourself. If you want a diversification away from boring under performing mutual funds and to have the prospect of gains that will make your fund manager green with envy, then consider doing it for yourself and a high return investment such as natural gas. |
