Jul. 30 at 10:38 AM
$EOG $XOM $COP $XOP $B
I’m not changing my stance on where natty gas is going.
My call has been
$6+
Not to move to that level and collapse, but to maintain
$6 for years.
The FCF will be staggering for energy companies.
Now to discuss WTI.
I still believe that
$300 oil will occur.
Not to floor there, but a blow off the top move in the future.
Regardless of that, if oil simply stays in the
$80 range, the FCF that the majors earn will be billions every quarter.
Back in the 1980’s, energy made up 25% of the SPY. That has steadily declined to 3.28%
Material/Miners made up 6-8% in the 1980’s and today is less than 2%.
What I see occurring as we move into the 2030’s is for energy and materials to move back to 25-30% SPY weight. That’s where the money and earnings will go.
Both sectors are extremely undervalued versus the SPY/QQQ’s.
Don’t lose sight. Stay the course.
Commodities will be the biggest winner in the 2030’s.
Focus Daniel Son.
