 |
| The Motley Fool game room (Photo credit: jgarber) |
Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinions of our bloggers and are not formally edited.
“The market can stay irrational longer than you can stay solvent.” The popular investing quote by John Maynard Keynes is about the best way I can explain the current price of Natural Gas. With oil prices still well over $100 a barrel which is giving us prices at the pump of over $4 a gallon; it seems irrational to me that another equivalent energy supply is trading at around two dollars and change.
Based on energy equivalent basis oil and natural gas should trade at a six to one ratio, though it’s typically traded at a ratio between eight to twelve times. Depending on where prices are at any given day, it’s recently been as high as sixty to one. Something has to give and when it does who stands to win? ... Continue to read.
No comments:
Post a Comment