One of the Sneakiest Bull Markets I’ve Ever Seen

Doc’s note: This essay comes to you from Matt Badiali, editor of the Stansberry Research Resource Report, excerpted from the September 21 Growth Stock Wire.

It’s about a huge bull market that most investors are completely missing. After I read it, I had to share…

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One of the most hated products in the oil and gas sector has jumped in recent months.

It’s one of the sneakiest bull markets I’ve (Matt) ever seen. We’re coming out of a massive glut and yet the price soared this year.

Best of all, few investors even realize what’s going on with this product today…

You may have figured it out by now… I’m talking about natural gas. We saw this one coming. Back in June, I predicted that this would happen.

Natural gas production in the U.S. hit an all-time high in 2001. But most of the giant reservoirs were gone. Gas exploration hit a standstill… and production began to decline in the early 2000s. As production continued to decrease, the price of natural gas soared to nearly $14 per thousand cubic feet (Mcf) by 2008.

The “shale revolution” once again caused natural gas production to increase beginning in 2008. This is when the development of drilling technologies started to allow us to extract far more oil and gas directly from shale.

As production soared due to the shale boom, the price of natural gas plummeted.

It bottomed around $1.49 per Mcf this past March. Then, the price soared 100% to just less than $3 per Mcf by early July. It has traded between $2.55 and $3 per Mcf since then.

So what caused the price of natural gas to jump substantially in recent months?

The ongoing crisis in the oil industry.

Here’s what I wrote in June…

Oil prices fell, killing the industry. Nearly 70 companies have gone bankrupt since the start of 2015. Billions of investment dollars evaporated as these stocks went to zero. So companies stopped drilling wells… And U.S. production is falling.

Oil production continued to fall, and it took natural gas production with it… because natural gas is a byproduct of oil production in the country. Below, you can see the past decade of natural gas production…

nat-gas-production

You’ll notice that natural gas production is down almost 5% since February. That’s the largest percentage decline since it fell nearly 8% from January 2012 to August 2012.

At that time, the price of natural gas doubled. The decline in natural gas production could go much deeper this year as oil production continues to fall. Fewer active oil wells in the country today mean less natural gas production. Because of that, natural gas prices could rise even further.

Good investing,

Matt Badiali

Doc’s note: Matt recently detailed two companies to profit from the rebound in natural gas prices that pay you money every month. For retirees, the income both these companies pay out is super safe…

  1. One of these investments isn’t allowed to take on debt. So investors don’t have to worry about bankruptcy.
  2. The other is similar to a utility… It owns a massive amount of land – the size of some states – and collects a “toll” of sorts when companies want to explore or drill on its land.

The opportunity in these two companies is a huge income secret that wealthy investors and politicians – including a current presidential candidate – use regularly to get paid consistent income each month. And Matt says there’s a way for everyday investors to take advantage of this opportunity. See Matt’s full explanation and details on how to get started right here.