A Forever Home on the Range

It has been tough for me to be steadfastly bullish on much within equities for a good while, given the bifurcation of the asset classes containing many classical elements of a mania.

However, we have been consistently bullish in recent quarters on the prospects of natural gas and nuclear names emerging. The key point there is that both of these sectors have lay dormant for over a decade in most cases, unlike the tech/growth names which have led equities and been nonstop freight trains higher for years and years. 

Simply put, the runway for takeoff in natural gas and nuclear/uranium remains particularly promising. 

Thus, while the huge pop in natural gas today on reports of a looming January polar vortex blast for most of America may be cavalierly dismissed by many growth investors as a one-off event to be faded, the reality is that this news may be a mere excuse rather than some magical catalyst for natty and natty-related stocks to do that which they were bound to do anyway--Finally break free from years of being undervalued by markets.  

Range Resources, with interests in Texas and Pennsylvania, is one such example, seen on the multi-year chart, below.

RRC has a fairly cheap valuation and impressive profit margins. But let's be honest--Fund managers and retail investors could not care less. They simply want to chase up the Mag7 names, Costco, and maybe some crypto coins in there, too. 

Ultimately, this monthly chart should uncoil higher, however, with a tight multi-year base since 2022 (highlighted) within a large cup and handle bullish bottom since 2015.

Put another way, into 2025 I expect long-term charts to finally come home to roost: The historically steep and extended tech/growth names should break, while the perpetual dead money/home on the range names (mostly commodities) should benefit from rotation.