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3 Sectors to Own for the Next Decade

These sectors will reward patient investors in the long term

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Energy

Lightbulbs 3 Sectors to Own for the Next DecadeYes, it’s cliché, but true nonetheless.

While we all grumble when gas prices rise, it’s rare for consumers or businesses to dial back how much of it they use. In fact, long-term demand for energy is growing regardless of costs. The same goes for heating oil, natural gas, or any other energy-centric commodity. We’re addicted, and alternative energy sources — despite how interesting they are — just aren’t ready to make a dent. The Energy SPDR (XLE) will work nicely in most portfolios.

Top industry in the energy sector: Natural gas.

Another cliché, but one that will get traction for years to come.

When natural gas prices slumped to a low of $2.12 per million BTUs in early 2012, most explorers and miners could no longer produce it profitably, calling into question the long-term viability of natural gas as a business opportunity. That big price plunge, however, was simply the natural response to an equally-ridiculous surge in natural gas prices in 2008, to a high of $13.60.

Now that the volatility kinks have been worked out, the tug-of-war between gas explorers, utility companies, and consumers seems to be stabilizing around $4.00 per million btu. That’s a price that rewards the efficient and cost-effective producers, but doesn’t allow the poorly-run companies to thrive. Look at Chesapeake Energy (CHK) as a way to play.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/3-sectors-to-own-for-the-next-decade/.

©2014 InvestorPlace Media, LLC

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