Connect with us

Commodities

Apple 24-inch M1 iMac review

Last September we concluded our 27-inch iMac review thusly, “The big open question mark here is what the future looks like for the iMac — and how long we’ll have to wait to see it. That is, of course, the perennial question for hardware upgrades,…

Published

on

Last September we concluded our 27-inch iMac review thusly,

“The big open question mark here is what the future looks like for the iMac — and how long we’ll have to wait to see it. That is, of course, the perennial question for hardware upgrades, but it’s exacerbated by the knowledge of imminent ARM-based systems and rumors surrounding a redesign.”

It was, as these things go, less than a full-throated endorsement of Apple’s latest all-in-one. We certainly weren’t alone in the assessment. It was a weird liminal zone for the computer — and Macs in general. At WWDC in June, the company had taken the unusual step of announcing its move from Intel to its own in-house chips without any hardware to show for it.

The reasoning was sound. The company was looking to help developers get out ahead of launch. It was going to be a heavy lift — the first time the Mac line had seen such a seismic shift since 2005. Fifteen years is a long time, and that’s a lot of legacy software to contend with. While the move wouldn’t outright break every piece of MacOS software, it was certainly in devs’ best interest to optimize for the new hardware, by way of the Mac Mini developer kit the company was offering. The full transition to the new silicon, Apple noted, would take two years.

Image Credits: Apple

In November, the company debuted the first M1 Macs: a new Mac Mini, MacBook Air and 13-inch MacBook Pro. We spent several thousand words reviewing all three systems, but ultimately Matthew put it pretty succinctly, “Apple’s new M1-powered MacBook shows impressive performance gains that make Intel’s chips obsolete overnight.”

Which is, you know, a rough look for an all-in-one launched a mere two months before. That goes double for a system that hadn’t seen a fundamental redesign in some time. Two months after launch, the 2020 iMac was already starting to feel old.

Image Credits: Brian Heater

Fast-forward to last month, when Apple announced the new iMac amid a flurry of hardware news. This, it seems, was the iMac we’d been waiting for. The new system brought the most fundamental redesign in a decade, with an ultra-compact new form factor, improvements to audio and video (a big sticking point in the remote work era) and, perhaps most importantly, the new M1 chip.

Image Credits: Brian Heater

The biggest thing the 2020 system has going for it is that it’s, well, big. Having used a 27-inch iMac for much of my day-to-day work throughout the pandemic, I’m honestly surprised by how much I miss those extra three inches. I’d initially assumed that added bit of screen real estate was going to be fairly negligible once you’ve passed the 20-inch threshold, but turns out, like anything else, it takes some getting used to.

There’s an immediate upside, too, of course. I was genuinely surprised by how compact the new design is, compared to past iMacs. In spite of adding 2.5 inches to the display size over the 21.5-inch, the new system is an extremely thin 11.5 mm (or 14.7 when the stand is factored in).

The overarching theme for the system is “cute.” This is not a word I often apply to technology. Words like “cool” or “sleek” are generally go-tos here. But I’m at a loss for a better word to describe what feels like a true spiritual successor to the iMac G3. The colorful line of all-in-ones ushered in Steve Jobs’ second triumphant stint with the company, arriving at the tail end of a decade in a year personified by the Volkswagen’s New Beetle.

Of course, the design language has evolved dramatically in the nearly quarter-century since the first iMac arrived, owing to changing styles and, of course, ever-reducing component sizes. The flat-panel design arrived early this century and settled into the most recent design around 2012. Sure, there have been plenty of updates since then, but nine years is a long time for an Apple design to go without a major refresh.

Image Credits: Brian Heater

It finds the company moving from what was ostensibly an industrial design to something more warm and welcoming. The color is the thing here. It was the most frequently discussed question around the TechCrunch (virtual) offices. Everyone wants to know which we’d be getting. Mine landed with a yellow hue — something nice, light and spring. Honestly, it’s more of a gold than I expected, with a bright and shiny glean to it. I will advise that anyone who plans to buy one of these systems visit an Apple Store if there’s one nearby if you’re comfortable doing so. It’s really the sort of thing that really benefits from being seen in person, if possible.

That goes double here — since, boy howdy, is Apple on theme. The keyboard matches, the cables match, the desktop wallpaper matches, the adorable packaging matches (it’s a fun unboxing experience, as those things go) and even little touches like the OS buttons match. The latter two, obviously, are something you’re able to futz around with a bit. But the system and even the keyboard is a bit more of a commitment, really. After all, this is probably the kind of thing you’re going to want to hold onto for a number of years, so lighting and interior decorating are both worth considering before you make your decision. I recognize this is an odd thing to think about when talking about a desktop computer, but, well, it’s the iMac.

The company is offering an AR iOS app for seeing how the new iMac will fit in with its surroundings, which is a clever — and probably useful — touch. The system also weighs in at less than 10 pounds. This is admittedly not something I’ve given much thought to with desktops. “Portable” is a weird way to describe the form factor, but particularly compared to other desktop systems, it kind of fits? At the very least, it’s not entirely out of the realm of possibility that you can occasionally move the thing from room to room, as needed.

Image Credits: Brian Heater

In broad strokes, the front of the system is similar to that of the past iMacs, though the bottom panel and its large Apple logo have been swapped out of a streak of color. The pane of glass lies flush with the screen and a not insignificant white bezel that frames it. The bezel, combined with the panel, comprises a not insignificant amount of real estate below the display, likely owing to the placement of components and the downward-firing speaker grille that runs the full length of the computer’s bottom. Up top is the newly upgraded 1080p HD Webcam — the first on any Mac.

As with past iMacs, the system sits atop a stand. In the case of the yellow model, at least, the stand is a notably darker hue than the front of the system. There’s a VESA mount option configurable upon purchase, but the stand itself is very much not designed to be user replaceable. The hinge’s action is smooth. I found myself pivoting the system up and down semi-regularly to better frame myself in the webcam, and did so with ease.

Image Credits: Brian Heater

There’s a 3.5 mm headphone jack on the left — hello, old friend. I much prefer this placement to the rear of the device, which requires the cable to wrap around the side or bottom.

Image Credits: Brian Heater

A hole inside the stand is designed for cables to be run through — specifically power. Magsafe — er, the magnetic charging connector — really popped up unexpectedly here. It’s less about the quick release that you would find on the old MacBooks and more about the ease of simply snapping the cable in place. I suspect that people are less likely to trip over a desktop cable that never (or at least rarely) moves.

Image Credits: Brian Heater

The big update to the power cable situation is, of course, the addition of ethernet to the brick. The brick is quite a bit larger — especially if you’re accustomed to dealing with MacBooks. But likely it will be out of the way. What it does bring is the removal of some additional clutter on the back of the system and helps keep the computer itself that much thinner. For most people in most cases that can access a hardwired connection, it’s a nice addition.

Image Credits: Brian Heater

The port situation, on the other hand, is decidedly less so. I like ports. I have lots of stuff that need plugging in to the back of the computer and ports are probably the best case to plug ’em. The entry-level system has two Thunderbolt/USB ports. You can upgrade that to four. Definitely do this. Seriously. You’re not going to regret it.

I’m someone who keeps the wireless keyboard and trackpad/mouse plugged in most of the time. I know, it kind of defeats the purpose, but worrying about charging accessories is not another stress I need in my life right now. So that’s two ports right there. I also have some AV accessories and suddenly, boom, you’re out of ports.

The $1,299 version of the system ships with the Magic Keyboard. It’s pretty much the same as other Magic Keyboards of recent vintage. It’s not for everyone, I know. Those who love mechanical keyboards will find something to be desired in the tactility, but it’s a step up from MacBooks and I’ve certainly grown accustomed to using it. There’s no number pad on the base model, but the coloring coordinates with the Mac.

Image Credits: Brian Heater

With the $1,699 model, you get upgraded to a version with Touch ID — something that’s been a long time coming on the desktop system. Like other Macs (and older iPhones), the fingerprint scanning login is nearly instantaneous. As has been the case for a while, if you’re an Apple Watch wearer, that will log you in as well, but the addition of Touch ID on the desktop is great. The base version comes with the Magic Mouse. It’s $50 to upgrade to a Trackpad and $129 for a combo. I’ve grown fond of the Trackpad, so that’s where I’d probably land here (I doubt many people will have a need for both).

Image Credits: Brian Heater

As ever, I understand the many reasons the company has pushed its line to USB-C — it’s especially obvious when you see how much room has been freed up on the rear of the device. But man, I miss having those legacy USB-A ports on the 2020 iMac. Meantime, you might want to toss a couple of A to C USB adapters into your basket before check out. That’s kind of just life with Apple, though. Courage, and all that.

I do wonder if this means the company is positioning the M1 line for the return of an iMac Pro. Stranger things have happened. For now, of course, the company is more focused on the Mac Pro at the much higher end.

Image Credits: Bryce Durbin/TechCrunch

As expected, the new M1 chip breathes new life into the system. Take our Geekbench 5 scores: 1,720 Single and 7,606 multi-core. That blows the average of 1,200 and 6,400 for the 21.5-inch system out of the water. Things understandably take a dip with the Rosetta (Intel) version at 1,230 and 5,601, respectively, but it’s still solid performance running through a translation layer. But it also points to why Apple was so proactive about getting developers on-board with the new silicon. On the whole, the gains are in-line with the the other new M1 systems we’ve seen — which is to say a nice, healthy leap forward into the future of the Mac.

Image Credits: Bryce Durbin/TechCrunch

If you want to know how much of your workflow will be impacted, this resource is a good place to start. On the whole, I found that most of my day to day apps were fine. There are outliers, of course. Spotify and Audacity are right there. Performance is impacted in both case, but on a whole, they worked okay through Rosetta. Usage is more resource-intensive, though.

Image Credits: Bryce Durbin/TechCrunch

Spotify is probably a question of how many resources the Apple Music competitor wants to put into a new version, while Audacity is likely more of an issue of how many resources the organization has at its disposal. The further you move away from big names like Microsoft and Adobe, the more of a crapshoot it is. But there are some support issues with bigger names still, as well. For instance, I upgraded to the Apple silicon version of Zoom, but downgraded when I discovered it doesn’t work with the Intel-only version of the Canon EOS webcam software I use.

Image Credits: Bryce Durbin/TechCrunch

I recognize this is an extremely specific issue, but, then, workflows are extremely specific. As M1 systems become the mainstream of Macs, however, developers ultimately won’t really have much of a choice. Support Apple Silicon or risk becoming obsolete. Growing pains are essentially unavoidable with this sort of shift, but the results really speak for themselves. Apple Silicon is the future of Macs and it’s a fast-booting, smooth-moving future, indeed.

I can practically see the Apple team shouting at me when I mention the external mics and cameras I use to record video for work. After all, the new iMac sees the biggest upgrade to these things in some time. The best time for a new microphone system and the first 1080p HD camera on a Mac would have been last year, as the pandemic was beginning to transform the way we work and meet. The second best time, of course, is now.

Apple did tout an improved camera system on last year’s MacBook, but that was more to do with the image signal processing on the chips. That goes a ways toward improving things like white balance, but a truly meaningful improvement to imaging generally also requires new camera hardware. Take a look at the below images.

Image Credits: Brian Heater

That’s the 2020 iMac on the left and new M1 iMac on the right. Forgetting (hopefully) for a moment my droopy, partially paralyzed face (2020, am I right?), the image is night and day here — and not just because I’m slightly better put together all of these pandemic months later. The change that comes from upgrading from 720p to 1080p is just immediately apparent in term of image quality. I anticipate Apple upgrading its systems across the board, because teleconferencing is just life now.

iMac 2020:

iMac 2021:

Along with camera, the mic system got a nice upgrade. I’ve re-recorded the same audio that I did back in November on the old system. The three microphone array is crisper and much clearer, eliminating much of the background noise hiss. The six-speaker audio system is an improvement, as well. I found it worked well with music and movies, but could be less clear for teleconferencing, depending on the quality of the other attendee’s mic. The audio could be a bit bass-heavy for my taste.

On the whole, for most people, day to day, I think the audio and video upgrades are plenty. If you use your system for the occasional Zoom calls and some music listening, you should be fine. Depending on what you’re looking to get out of these things, though, a decent external camera, mic or speaker is never a bad investment.

The new iMac represents a nice leap forward for the desktop all-in-one in some key fundamental ways, breathing new life into one of the company’s most popular systems that’s long been in need need of a makeover. I miss some ports and now feel spoiled having had an SD reader on the 2020 model. I would also love to see a 27-inch version of the system on the market at some point (iMac Pro reboot, anyone?). On the whole the system is less targeted at creative pros than other models have been in the past — though the M1 and its on-board ML are still capable of impressive audio, video and still image editing.

But a cute, color coordinated design and some long overdue upgrades to teleconferencing elements aside, Apple Silicon is rightfully taking centerstage here as it did with the MacBooks and Mac Mini before it. The pricing on the systems was a source of some confusion around these parts when first announced. The very base-level version runs $1,299, while the tip-top level goes up to $2,628 with all the bells and whistles.

At the most basic level, there are three main configurations:

  • $1,299 gets you an 8-core CPU and 7-Core GPU, 8GB RAM, 256GB storage, two USB ports, standard Magic Keyboard
  • $1,499 upgrades the GPU to eight cores, adds ethernet and two USB ports and brings Touch ID to the keyboard
  • $1,699 upgrades storage to 512GB (Our configuration as tested)

The systems are available for pre-order now and will start arriving in customers’ homes this Friday.

Read More

Continue Reading

Commodities

Five Major Challenges Facing The Energy Industry

Five Major Challenges Facing The Energy Industry

Authored by Irina Slav via OilPrice.com,

Record-high prices at the pump, a looming diesel…

Published

on

Five Major Challenges Facing The Energy Industry

Authored by Irina Slav via OilPrice.com,

Record-high prices at the pump, a looming diesel shortage right when the summer season is starting, and an uncooperative OPEC are probably reasons for many headaches among government officials around the world.

Yet these are, in fact, manifestations of deeper problems in the energy industry.

Underinvestment 

In the past decade or so, Europe and, to a lesser but no less significant extent, North America, have made it their mission to reduce their reliance on fossil fuels and increase their reliance on renewable energy.

This has spurred an investor exodus from oil and gas and the emergence of the so-called ESG investing trend. Money for new oil and gas developments has become more difficult to tap as banks join the ESG movement, and companies have had to cut back on spending.

Saudi Arabia's oil minister warned that underinvestment in oil and gas would have a boomerang effect on consumers earlier this year, and he is not the only one. Many OPEC officials have made the same warning but, apparently, to no avail. After all, none other than the International Energy Agency said last year the world does not need new oil and gas exploration because we won't be needing any more new oil or gas supply.

Of course, it was only a few months later that the IEA changed its tune, calling on OPEC to boost production, and it demonstrated one of the harsh realities of the energy industry: you cannot reverse a process that has been going on for years in a matter of months.

Low discovery rates

A topic that doesn't get much talked about, the average rate of new oil and gas discoveries is, in a way, comparable to the average conversion rate of solar panels: it is well below 30 percent.

Bloomberg recently reported that three wells that Shell had drilled offshore Brazil had come up dry. The supermajor had paid $1 billion for drilling rights in the area and had spent three years drilling to come up empty-handed. Exxon had also failed to tap any significant oil reserves in its Brazilian blocks, which cost it $1.6 billion.

The news highlights the risky nature of oil and gas exploration even in places like Brazil, which has been touted as the next hot spot in the industry, probably alongside Guyana. Brazil has become a magnet for supermajors because of its prolific presalt zone, but, as one local energy consultant told Bloomberg, the big discoveries have already been made—back when the discovery rate was close to 100 percent.

The average successful discovery rate for the oil and gas industry is much lower than that, however, at 24.8 percent, according to Bloomberg. And there are fewer and fewer big discoveries to be made.

Production cost inflation

Broader inflation trends, in large part driven by soaring energy costs, have not passed the energy industry itself. In the U.S. shale patch, production costs have risen by some 20 percent. Two companies recently warned they would be reporting higher costs for their second quarters, Continental Resources and Hess Corp, and they are far from the only ones experiencing these higher costs.

Shortages of raw materials such as frac sand and, earlier this year, steel piping for wells, are one reason for the production cost inflation, not just in the shale patch but everywhere where these raw materials are used in oil fields. A shortage of labor is a special problem for the U.S. shale patch, too, helping to drive production costs higher. Lingering supply chain problems from the pandemic are also in the mix.

The bigger problem is that the industry is not expecting any respite in the coming months, either, as Argus recently reported, citing oil and gas executives. The production cost squeeze comes at a time when the federal government really needs more oil and gas, which is probably the worst possible time as it has discouraged drillers further from spending more on new drilling.

Cyberattacks

Cybersecurity has become a cause for concern in the energy industry in the past few years as cyberattacks have multiplied significantly. The Colonial Pipeline hacking really helped out things in perspective on the cybersecurity front, but little action followed, it seems.

A brand new survey by DNV, the Norwegian risk assessment and quality assurance consultancy, revealed this week that the industry is quite uneasy about cyberthreats and, what's worse, not really prepared to handle them.

According to the study, 84 percent of executives expect cyberattacks will lead to physical damage to energy assets, while more than half—54 percent—expect cyberattacks to result in the loss of human life. Some 74 percent of the respondents expect environmental damage as a result of a cyberattack. And only 30 percent know what to do if their company becomes a target of such an attack.

Geopolitics

The most chronic risk in the energy industry, geopolitics is never far away when prices start swinging wildly or, as is the case right now, remain stubbornly high. The prospect of an EU oil embargo on Russia, although dimming in the past few days, is one big bullish factor for oil prices. The lack of progress on Iran nuclear talks is another. And then there is, of course, OPEC's evident unwillingness to respond to calls from the West for more oil.

Russia itself does not seem bothered by the embargo prospects at all. "The same oil that they [the EU countries] bought from us will have to be purchased elsewhere, and they will pay more, because the prices will definitely rise; and once the cost of delivery and freight increase, it will be necessary to invest in building the corresponding infrastructure," Deputy Prime Minister Alexander Novak said this week.

Iran is meanwhile boosting its oil exports, which go almost exclusively to China. The country has signaled it will not agree to a deal with the U.S. unless the U.S. meets its demands, and it appears that the ball is now in Washington's court. In the meantime, China will have Iranian oil, but no one else will.

For the U.S., the price problem has become so dire that now President Biden is seeking a meeting with the Saudi Crown Prince Mohammed, whom he has consistently refused to communicate with, instead communicating with his father, King Salman. Biden has also been openly critical of MbS for his alleged role in the killing of a dissident Saudi journalist, calling the Kingdom a "pariah" with "no redeeming social value." Geopolitics can be awkward.

Tyler Durden Mon, 05/23/2022 - 21:40

Read More

Continue Reading

Spread & Containment

What Did Other Term Spreads Do? And What Does the US Spread Mean for Foreign Economic Activity?

As noted in the post by Rashad Ahmad, foreign yield curve developments helped predict US growth. What did those spreads do? And, turning the question on…

Published

on

As noted in the post by Rashad Ahmad, foreign yield curve developments helped predict US growth. What did those spreads do? And, turning the question on its head, what does the US spread mean for those economies’ recession prospects?

Figure 1 depicts 10yr-3m sovereign spreads over time — so before the 2007 recession and during the run-up to  the 2020 pandemic.

Figure 1: 10yr-3mo Treasury spread (bold black), 10yr-3mo government bond – 3 month interbank spread for Canada (blue), for France (brown), for Germany (green), for Japan (red), for UK (dark gray). Source: Treasury via FRED, OECD Main Economic Indicators via FRED, and author’s calculations.

A cleaner measure for the foreign countries would’ve used sovereign yields for the short rate, to make comparable to the US spread (and to control for default risk), but I couldn’t get that easily.

While Chinn and Kucko (2015) examined cross-country evidence for own 10yr-3mo term spreads predicting recessions, we did not examine whether US term spreads had predictive power for foreign recessions. Mehl (2009) examined the usefulness of US spreads for predicting other-country economic activity and inflation rates — but using the 5yr-3mo spread. See the (brief) review of predicting recessions cross-country in this post.

A quick and dirty look at the data shows that the US term spread does not help much in adding to the 12 month predictive power of own-term spread for recessions during the 1970-2022M05 period for the countries shown above (recession peak-to-trough dates from ECRI). The probit regression involves the local economy recession indicator on the LHS, and the local term spread on the RHS, alone and augmented with the US term spread, along with a constant. (Of course, results might change with the addition of other covariates like oil price, equity prices and some measure of financial conditions).

Note that I only examined recessions; I didn’t examine growth or inflation. More for later.

 

 

 

 

Read More

Continue Reading

Spread & Containment

Top Gas ETFs to Buy in 2022 with Soaring Gas Prices

To grab your piece of the rising energy costs, below are the top gas ETFs to buy in 2022. Let’s get started.
The post Top Gas ETFs to Buy in 2022 with…

Published

on

All anyone wants to talk about anymore is the soaring price of gasoline. After all, the cost to fill your tank has never been higher. With industry profits piling up, get your share with the best gas ETFs to buy before the second half (2H) of 2022.

First, the pandemic severely strained the industry as demand fell off from global lockdowns. As a result, over 100 oil and gas companies went out of business.

Then, as the economy reopened and demand started catching up, Russia’s invasion of Ukraine stoked a fire under an already strained market. So, demand is outpacing supply as nations look elsewhere to fill the supply gap left by Russia’s massive presence in the commodity market.

Nonetheless, gasoline is essential to keep the economy running smoothly. You need gas for fuel to get to work and back. Not to mention, businesses rely on gas for transporting goods, which influences prices. To grab your piece of the rising energy costs, below are the top gas ETFs to buy in 2H of 2022.

What Are the Best Gas ETFs to Buy Right Now?

The top gas ETFs to buy are outperforming the market right now as soaring energy costs boost profits. For example, Natural Gas Futures (NG1) are up over 120% YTD and almost 200% over the past year.

Meanwhile, all major indexes are down significantly this year, with the Nasdaq 100 Index (NDX) slipping almost 30% YTD. On top of this, researchers at J.P. Morgan predict gas prices could remain elevated “even as far back as 2024” as supply disruptions will be hard to overcome.

No. 3 Barclays iPath Series B Bloomberg Natural Gas Subindex (NYSE: GAZ)

  • YTD Return: 124%
  • Expense Ratio: 0.45%

Although the Natural Gas Subindex is set up as an Exchange Traded Note (ETN), it can help you gain exposure to the surging gas market. An ETN differs from an ETF in that the fund consists of unsecured debt notes rather than holding a group of stocks.

The GAZ ETN seeks to replicate the returns of the Bloomberg Natural Gas Subindex by investing in futures contracts. That said, the ETN does not pay a dividend. Therefore, GAZ is best as a short-term tool.

Since the ETN is not tied to any companies, only futures, it can carry additional risks. For example, investors are left with little or nothing if the issuer defaults. In comparison, ETFs hold several companies, helping to diversify and spread risk.

At the same time, the ETN moves alongside the price of natural gas contacts. So, if you are looking for direct exposure to gas prices, the GAZ ETN may be for you.

Keep reading for more on gas ETFs to buy.

No. 2 United States Natural Gas Fund (NYSE: UNG)

  • YTD Return: 128%
  • Expense Ratio: 1.11%

The United States Natural Gas Fund is another way investors can invest in natural gas prices without physically trading futures. For one thing, UNG is a commodity pool. Or in other words, it pools investor money to invest in futures, swaps and forward contracts.

The fund aims to give investors access to daily changes in natural gas deliveries at the Henry Hub, a distribution center. As a result, the daily changes resemble changes in natural gas prices.

However, since management is consistently active, it will cost more to invest. Though the higher expense is not slowing UNGs momentum, up close to 130% YTD. Likewise, UNG is more geared for short-term trading as it holds near-month contracts.

No. 1 United States 12 Month Natural Gas Fund (NYSE: UNL)

  • YTD Return: 113%
  • Expense Ratio: 0.90%

Similarly, the United States 12 Month Natural Gas Fund is a commodity pool targeting the price of natural gas. But, UNL differs in that it holds futures contracts for the nearest 12 months.

In other words, UNL buffers itself from short-term movements. As a result, investors can gain exposure to changes in natural gas prices with less risk than short-term contracts.

If you wish to capture your piece of the soaring energy prices but want less risk of contango (higher spot price), UNL may be a better choice.

Best Leveraged Gas ETFs to Buy

To maximize your returns, you can opt for a leveraged ETF to multiply the changes in an underlying index. For example, the ProShares Ultra Bloomberg Natural Gas ETF (NYSE: BOIL) targets to return 2X the daily performance of a natural gas index.

As a result, investors can earn double the daily returns of natural gas changes. With this in mind, the BOIL ETF is up 322% in 2022 alone.

However, there is a significant risk of investing in leveraged ETFs. Though you can earn double the returns, you can also double your losses. Investing in these funds is only recommended if you are comfortable with the significant fluctuations.

Best Inverse (Short) Gas ETFs to Buy

For those that think gas prices will ease soon, finding an inverse gas ETF to buy in 2022 may be for you. Or, if you have earned a pretty penny on gas and oil stocks already, you may want to protect your downside.

Nevertheless, the ProShares Ultrashort Bloomberg Natural Gas ETF (NYSE: KOLD) is a way to earn (-2X) the daily performance of a natural gas index.

In comparison, the KOLD ETF is down 90% YTD while natural gas prices soar. So, it gives you an idea of how quickly earnings can dry up in these types of investments.

What Gas ETFs to Buy for Passive Investors

The funds listed above are the best gas ETFs to buy for capturing the explosive rise in gas prices. But, for passive investors, these may not be the best option. For one thing, the gas and oil market can change rapidly.

During the pandemic, oil prices plunged below $0 for the first time. Then, two years later, we are looking at record high prices of over $130. As a result, oil and gas ETFs are having wild swings.

Nonetheless, research from J.P. Morgan shows the cost burden of higher gas prices is around $7 billion per month. As a result, consumers have less to spend in other areas of the economy. We already see the evidence with companies like Walmart (NYSE: WMT) and Target (NYSE: TGT) missing earnings estimates while blaming transportation costs.

In short, profits are being pulled from other parts of the economy to compensate for the lack of supply and rising demand. With this in mind, the energy sector looks ready to continue its run.

The Energy Select Sector SPDR Fund (NYSE: XLE) is an excellent option for passive investors looking to gain exposure with less risk. The XLE ETF is up 48% YTD while investing in top gas and oil companies like Exxon Mobile (NYSE: XOM). No matter your investing style, with the price at the pump holding steady, these are the top gas ETFs to buy this year to get your share.

The post Top Gas ETFs to Buy in 2022 with Soaring Gas Prices appeared first on Investment U.

Read More

Continue Reading

Trending