WHAT IS YOUR LONG TERM OUTLOOK FOR 2003?
SINCE MID JUNE, 2003 I HAVE BEEN GETTING SELL SIGNALS. (ON 7/23/2003, STILL IN SELL MODE, & AS OF 08/05/2003, REALLY IN SELL MODE.)
THE HIGHS FOR THE YEAR MAY HAVE ALREADY BEEN MADE, & WE SHOULD SELL OFF TIL THE 4TH QTR.
MID NOVEMBER TO ALMOST THE VERY END OF DECEMBER, 2003, SHOULD BE BULLISH. I DO NOT KNOW IF THIS LATE YEAR END RALLY WILL EXCEED THE JUNE/JULY, 2003 HIGHS.
WHEN THE MARKETS FINALLY BOTTOM, THERE SHOULD BE BLOOD FLOWING IN THE STREETS. I WILL BE LOOKING TO BUY WHEN THE MASSES ARE SELLING. WHEN I GET A BUY SIGNAL, I WILL BE LOOKING FOR THE BEST OF THE BEST BEATEN DOWN STOCKS FROM THE BIG BOARD, & ENERGY STOCKS, & ALL THINGS RELATED TO ENERGY, FROM THE PIPES TO THE LUBRICANTS. (ENERGY & NATURAL GAS STKS ARE ALREADY ON THE RISE)
WHY IS GREENSPAN SO CONCERNED ABOUT NATURAL GAS & GIVING SPEACHES ABOUT THIS INSTEAD OF THE ENERGY SECRETARY? I DON'T USE NATURAL GAS BECAUSE I AM ON ELECTRICITY.
FIRST, ALMOST EVERYONE USES NATURAL GAS THROUGH UTILITY COMPANIES, FOR COOLING AS WELL AS HEATING. FOR YEARS PEOPLE WANTED CLEANER FUEL, SO MOST UTILITY COMPANIES HAVE SWITCHED AND/OR ARE SWITCHING FROM COAL TO NATURAL GAS TO OPERATE THE PLANTS IN ORDER TO PROCESS ELECTRICITY. NUCLEAR ENERGY HAS BEEN PROHIBITED, & USA COMPANIES MANUFACTURING SUCH SELL ABROAD.
SECOND, THE USA IS PAYING TWICE WHAT OTHER COUNTRIES ARE PAYING FOR NATURAL GAS. (THIS COULD KEEP UNEMPLOYMENT HIGH, WITH MORE OUTSCOURCING OF JOBS ABROAD, AND/OR COMPANIES MOVING ALL OPERATIONS ABROAD.)
THIRD, WE HAVE NO NATURAL GAS SURPLUS OR STORAGE OF NATURAL GAS. THE STORAGE CONTAINERS HAVE NOT BEEN BUILT YET. THE BIG THREE OIL COMPANIES ARE DISCUSSING THE BUILDING OF A NATURAL GAS PIPELINE, TO RUN ALONG SIDE THE CRUDE OIL PIPELINE IN ALASKA. IT IS STILL IN THE DISCUSSING STAGE, & IF AGREED UPON, IT WILL STILL TAKE 10 YEARS TO BUILD.
FOURTH, SOME FERTILIZER COMPANIES HAVE ALREADY WENT OUT OF BUSINESS. THE CLOSING OF THESE COMPANIES CAUSED THE RECENT PULL BACK OF NATURAL GAS AS THESE CLOSED COMPANIES NO LONGER REQUIRED THEIR NATURAL GAS. GREENSPAN IS CONCERNED THAT THE CLOSING OF THESE FERTILIZER COMPANIES MAY AFFECT OUR CROPS, AND SELL OF OUR CROPS. LESS CROPS, LESS JOBS, PLUS HIGHER FOOD COSTS, & HIGHER ENERGY COSTS ALL EQUAL LESS SPENDING THE CONSUMER WILL HAVE.
(CURRENT WEAKNESS IN NATURAL GAS COULD BE ANOTHER BUYING OPPORTUNITY.)
FIFTH, WHAT THIS MEANS IS THAT WE ARE USING ALOT OF NATURAL GAS WITH NO PROVISIONS TO DRILL OR STORE IT. GREENSPAN IS WORRIED BECAUSE THE NATURAL GAS PROBLEM CAN RIPPLE THROUGHOUT THE WHOLE ECONOMY.
A HOT SUMMER AND/OR A COLD WINTER CAN ONLY ADD TO THIS EXISTING PROBLEM.
THIS IS WHY GREENSPAN SAID NATURAL GAS AT $2.50 WAS PROBABLY A THING OF THE PAST UNTIL WE DRILL MORE, & BUILD STORAGE CONTAINERS. (COULD BE A 10 YEAR + PROBLEM)
THE NATURAL GAS PROBLEM DID NOT HAPPEN OVER NIGHT. IT HAS BEEN HAPPENING FOR YEARS & YEARS BECAUSE THE PUBLIC FORCED THE GOV'T TO RESTRICT DRILLING FOR ENVIRONMENTAL PURPOSES, WHICH MAY HAVE GONE TO EXTREMES, & THE END RESULT IS VERY HIGH PRICES WITH NO SOLUTIONS IN SIGHT.
IT IS AN ENERGY CRISIS OF THE 70'S-EARLY 80'S, EXCEPT THIS TIME INSTEAD OF CRUDE OIL, IT'S NATURAL GAS.
WE MAY BE SEEING JUST THE BEGINNING OF THIS LONG-TERM PROBLEM, & THE LONGER THE PROBLEM, THE LONGER THE ECONOMY WILL TAKE TO RECOVER.
COMMODITIES FOR YEARS HAVE BEEN IN A BEAR MARKET BECAUSE THE STOCK MARKET WAS IN A BULL MARKET. ENERGY WAS THE FIRST TO TURN BULLISH, THEN GOLD. I EXPECT IN THE FUTURE, CROP COMMODITIES WILL START TURNING BULLISH TOO.
PET PEEVES:
DON'T KNOW YOUR STOCK SYMBOLS, DON'T KNOW HOW MUCH YOU PAID FOR A STOCK, WORRIED ABOUT WHAT YOUR COMMISSIONS, WERE & WILL BE, & STUDY THE TV GUIDE MORE THAN YOUR LIFE'S INVESTMENTS, THEN DON'T CONTACT ME. I HAVE NO PATIENCE FOR YOU.
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