The Natural Gas Boon

Natural Gas ETFs and their very soon rise

By Darryl Weng

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Biden e​​liminates oil reserves. Russia schemes against Ukraine. Winter is arriving. The Stock Market is recovering from sporadic shocks from Omicron. Holidays are approaching. There is no reason not to place heavy investments in American natural gas ETFs. Even heavily leveraged natural gas ETFs like Proshares Ultra Bloomberg Natural Gas(NYSE: BOIL) shouldn’t be feared. Despite recent tumbling from November 26 at around $60 down to $29.02 at close on last Friday, BOIL sees great promise. Due to early volatility and Omicron fears, natural gas ETFs found themselves at steep losses. Luckily, the winter season has only started, and temperatures are yet to reach the lowest.

However, the main persuasion for investments in natural gas ETFs is the current political climate. Biden, due to the Democratic Party’s pressuring and emphasis on green energy, released all oil reserves that would force Americans to buy natural gas from individual companies. This clearly is a boon for American natural gas ETFs that rely much on American natural gas companies’ performances for upward movement. Meanwhile, in Asia, Russia finds itself testing the world’s patience by attempting to begin conflict with Ukraine. Ukraine just recently accused Russia of amassing tens of thousands of troops, despite G-7 leaders’ clear criticism of Russia’s intentions and prepared military response to Russia. Even if Russia were to not begin conflict with Ukraine, as that is the most practical move, the common person would rationalize their actions through psychological means - taking over-precautions due to such news of Russia. Over-precautions like pulling money out of foreign natural gas ETFs like those of the Middle East, favoring American natural gas.

Nowadays, due to the rise of meme stocks and the idea of common people bonding together to outperform hedge funds, shorting investors, and wealthy investors, the stock market is beginning to lean more towards psychological volatility, rather than reality and performance of companies. Stocks, bonds, and ETFs that become embroiled in mainstream news become hot topics and become heavily interested by the common person. Growth and falling of selected stocks/bonds/ETFs are now dictated by psychological means.

American natural gas ETFs have become such psychological ETFs. Only time will determine how much growth American natural gas ETFs will see. Before it’s too late, the attentive investor should take immediate notice of these ETFs and place major investments, for the winter season and tense political climate is soon to end.