Relativity ----
Hi Mr Clark,
---I am inclined to believe that the NG E&P situation is fundamentally strong.
---But at this point in time I am standing aside from them because my perception is that tech, etc, are seen by the market as leaders in the (assumed) forthcoming recovery. The NG E&Ps are seen, imho, as having much less potential upside, and that potential upside is seen as uncertain due to possible supply increases between now & next winter.
The NG producers are burdened by this uncertainty and will not draw money to them as will the stocks perceived to be recovery leaders, imho.
IOWs, the NG E&Ps look good, but not as good, relatively. imho.
Assuming we don't fall off the cliff, I think the place to be now is in the stocks which the market believes will prosper first from fed rate cuts. After some time has passed and NG supply/demand balance is more immediately compelling, & currently more attractive sectors have run up, it will be time to move back into NG E&Ps, imho.
I do also believe that sticking with the NG E&Ps thru this current weakness is a perfectly reasonable choice. I decided to step aside when the first 2 digit NG draw came out, but it was a difficult choice and only time will tell if it was correct.
After all, Heisenberg was uncertain.
Who am I to be so sure I'm right? <G>
regards,
diana |
