5 Ways to Profit From Snowmageddon

Cold Weather Stock #1 – United States Natural Gas (UNG)

Our first cold weather stock isn’t actually a stock; it’s an exchange-traded fund (ETF). It is United States Natural Gas (UNG), an ETF designed to replicate the performance, net of expenses, of natural gas. The logic for UNG is simple. The colder it is outside, the more we need to heat our homes and offices, and most of us do this via natural gas. The increased demand for natural gas should translate into higher natural gas prices. Of course, sometimes this simple logic isn’t quite that simple. But I suspect that if we continue having cold weather, as the experts predict, then the supply situation will begin to dwindle as demand becomes stronger. If this dynamic does take shape, it could mean a big surge in natural gas prices.

NEXT – Cold Weather Stock #2