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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: smolejv@gmx.net who wrote (33873)5/18/2003 4:08:34 AM
From: EL KABONG!!!  Read Replies (1) | Respond to of 74559
 
Hi DJ,

what can go wrong with this assumption? Recession?

Mild summer in the northern hemisphere, resulting in a lower demand for air conditioning... Mild winter in the southern hemisphere, resulting in a lower demand for heating...

Global decline in manufacturing, resulting in a lowered demand for electricity, much of which comes from gas-fired generating plants...

Basically, if a lower demand for NG should materialize (not anticipated), then a lower price for NG is a likely possibility. Much of the expectations for NG is built around increasing demand, which might lead to a shortage of NG, and resulting higher prices. This is the expected scenario. But great expectations are many times not realized. The contrarian viewpoint (to borrow a phrase from the markets) is that the shortage is not as bad as predicted and therefore prices don't rise to the expected levels.

But what do I know? I'm just playing devil's advocate here.

KJC