In Italy, they prosecute geologists for not being able to predict earthquakes. Free from the pressure of facing hard time, my 2014 forecast includes numerous earthquakes associated with the Pacific Rim of Fire (notice that I am not providing any dates).

The rollicking periodic table bingo hall now looks like an abandoned Atlantic City casino. Investors are rightly skeptical of resource juniors. There are some solid projects out there but it will take some time to cure the overshoot hangover. How long? I'll quote the investment legend, Jim Rogers:

Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.

Damn! 

However all bull and bear markets eventually end. Natural gas will be an interesting one to watch. North America has just experienced the coldest temperatures in 20 years. The response of natural gas prices speaks volumes. Extremely large volumes... of natural gas. Recent estimates of the Montney shale gas resource indicate there are sufficient quantities to supply Canada's needs for the next 145 years. The United States is also swimming in natural gas. If LNG exports to Asia and Europe don't happen, those reserves could be stranded.

It is rapidly turning into a global natural gas buyers market and linkages between LNG prices and crude oil prices are unlikely to hold up much longer. Competition for high priced markets from around the globe could shut the geographic arbitrage door just as Canadian LNG capacity comes on stream. Prime Minister Harper is drawing criticism for trying to facilitate Canada's energy exports. However if you look at the biggest number in this StatsCan table, you'll the economic logic.

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