OTCPK:STGSF - Post by User
Comment by
u8fishon Sep 06, 2009 4:38am
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Post# 16282612
RE: Here is why you should never invest in GAS
RE: Here is why you should never invest in GASAre you sure about that? The ETF is set-up to specifically track the nymex and has done a pretty good job from what i can tell. I checked a couple articles and they all recommend GAS over any other ETF vehicle because it has done a pretty good job. THe betarpro leveraged etf has the problem you guys are talking about and are meant to track the daily price movement and are leveraged so they are short term trading vehicles. This one is not and is backed by actual contracts. I am sure they must adjust for the contract roll because if you look at the chart below it is tracking pretty good. I am not sure investing in gas companies is the way to go as there has been a divergence in XNG (NG Amex Index) from the Nymex. The gas co's are valued a lot higher than the commodity which is speculation that gas must be going up. Also the oil/gas ratio is completely out of whack. Maybe I am missing something...can you explain how GAS is not tracking the Nat Gas index after looking at the comparative charts? You're losing money because NG price has been dropping - don't blame the vehicle.$0
Gas vs NGI$0$0