The energy sector “is the place to be. It will be the ultimate currency,” Mark Fisher, founder and CEO, MBF Asset Management told CNBC today. People will eventually “migrate” out of all these paper assets, he said. For that reason, Fisher will “remain bullish for the next 4 to 5 years” on energy and is in the process of creating an Exchange-Traded Fund (ETF) for long-term investors in the energy sector. This new etf will help the average investor to mitigate the effect of the roll list and better reflect the price of the underlying commodities.
Fisher is not bullish in the near term for natural gas, he thinks that there will be a tramendous amount of natural gas brought online. Despite a few spikes brought on by hurricanes, he thinks natural gas is not ready yet. The United States Natural Gas Fund (UNG) is trading down about .75% today at $8.09 with lower than average volume.
Fisher likes oil, and it seems he will be developing a fund to compete with the United States Oil Fund, LP ETF (USO) which seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. See Fisher’s explination, as to what will set his new ETF apart from those currently available, below: