Friday, October 19, 2012
Parets Likes Natural Gas, Coal, Over Crude
Saying crude oil at this time "is a mess," J.C. Parets said in regard to energy and commodities in general, investors need to look elsewhere for gains, as he sees the fall from $100 as a trend that is likely to continue at this time.
Parets, who is the founder of Eagle Bay Capital, sees the energy place to be as natural gas, and says coal is also worth a look, as it could move up on the sails of natural gas.
He said, "If we're right on natural gas and continue to see higher prices, I think we should continue to see higher prices for coal as well."
The trend that needs to be followed at this time in the sector is natural gas versus oil, not crude oil in and of itself.
The reason natural gas is so appealing to Parets is it continues to be way below its historic 10-year average in relationship to oil, which has been about 10-to-1. In the spring of 2012 it jumped to 54-to-1.