Now is the perfect time to invest in natural gas stocks. To many investors, that may seem counterintuitive. After all, natural gas has been the red-headed stepchild of energy for years. But prices for this plentiful alternative fuel are just beginning to turn higher.
It's easy to see how pipeline companies can profit from this situation – and several are already making their moves. Recognizing the dire need for their services, pipeline companies are stepping up and increasing capacity as quickly as possible.
It typically takes 12 to 18 months for gold to establish a new price high once it retreats from a strong run-up. Eight months have already passed since gold reached $1,900. The "Golden Staircase" theory tells us that it will take between four and 10 months to see new highs.
With ample stores and cheap prices, natural gas-related equities have taken a beating and continue to be battered. While it is always difficult to call a bottom, the tide may be turning for natural gas companies despite the latest data.
This was an up-and-down year for oil prices, but don't expect that pattern to repeat in 2012. No, next year, the trajectory for oil prices will be far more linear - and it's pointed up. In fact, we could even see $150 oil by mid-summer.