This Industry Could See Rapid Price Appreciation in 2012

Whew… what a year!

With only a few weeks left in 2011, now’s the perfect time to recap this year’s wild market action. Understanding what got us to where we are today is important in positioning your portfolio for the coming year.

Speaking of 2012, I’m also going to show you an industry poised to hand investors solid gains amidst all this market turmoil.

But first, let’s do a quick recap…

No doubt about it, 2011 has to go down as one of the most volatile years in history. Other than the financial meltdown a few years ago, I’ve never seen such uncertainty in the marketplace.

What’s funny is, the year started out on a positive note. The Dow opened 2011 at 11,577 and shot 7% higher by mid-February. At the time, investors hadn’t a care in the world and markets seemed to be on a never-ending hot streak.

But things went downhill from there…

Numerous headlines shook investor confidence as spring arrived. First it was the Japanese earthquake and resulting Fukushima nuclear disaster in March (red arrow #1). Then came fears of a weakening US economy in May (red arrow #2).

But it was the European debt panic that really sent investors for a loop (red arrow #3).

Investors had sinking suspicions about Europe’s debt problems for most of 2010. But it was mid-July of 2011 when things went from bad to worse.

From July 21st to August 10th, the Dow dropped over 2,000 points… a staggering 16% plunge in a short period of time.

Fears of a Greek debt default followed by contagion into core European economies had investors stampeding out of the markets. Painful memories of 2008 when the Dow dropped 50% in a year’s time are obviously still fresh in investors’ minds.

And that brings us to today…

Triple digit day-to-day market swings have been the norm since August. Headline driven markets are popping and plunging on the slightest whiff of news from Europe.

But there’s a distinct hint of optimism over the past few days.

Though we’re clearly not out of the woods yet, the debt drama on the other side of the pond appears to be simmering down. Europe’s leaders may finally be on the verge of putting an end to the immediate threat of sovereign insolvency.

If a solution is indeed right around the corner, a major hurdle for the markets will be cleared. At that point, we could see a substantial rally as once-scared investors rush back into the market with newfound enthusiasm.

If that’s the case, be ready to jump back into the market with both feet…

Now let me be clear, even if we do steer clear of a European meltdown, the US economy is still stuck in a slow-growth rut. In fact, third quarter US GDP readings came in at a mere 2%… certainly not great.

That’s why it’s imperative for profit-seeking investors to find companies in fast growing industries. And one of the quickest growing industries in the US right now is onshore oil exploration… namely unconventional shale oil.

Small and mid-cap companies positioned in the hottest shale fields in the country have enormous potential to grow your portfolio. Many of these explorers are quickly growing production rates… and revenues are surging as a result.

That’s just what the doctor ordered for investors seeking rapid price appreciation.

A simple way to gain exposure to the industry is through Dow Jones US Oil & Gas Exploration and Production (IEO). This ETF holds a few of the larger market cap companies drilling in prolific US shale fields.

If you’re looking for more spectacular returns, it’s best to focus on specific small cap producers.

Take a close look at this industry for your portfolio now!

–Justin BennettSource: Dynamic Wealth Report

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