In short: Prior pro pick, +22% since September, "still like it a lot" — "a very under-loved part of the S&P 500"; the natural-gas/AI-power leg.
FCG is a basket of natural-gas equities — a prior pick that's up 22% since September, and he "still likes it a lot." His one-liner: it's "a very under-loved part of the S&P 500," and natural gas is the cheap, overlooked fuel for the AI-power buildout while everyone fixates on chips.
57:42So there was like names like Long Run, Ontario, which are up a little bit, but the ETF, the First Trust Natural Gas ETF, up 22% over that time. Still like it? I like it a lot. Yeah. It's a very under-loved part of the S&P 500. Coal. You liked coal, and that worked out well. Up 27%. It went up 20%, but Core Natural Resources went up 50%, and now it's up 20%.
In short: Recommended last year; natural-gas equities "have done really well" — still a favorite, with the AI-energy demand tailwind.
FCG is a basket of natural-gas company stocks. He recommended it the prior year and it has "done really well." He still favors it — AI data centers need enormous amounts of power, and cheap U.S. natural gas is a primary way to supply it.
20:34When I When I say hard assets, I just mean commodities, but the natural gas equities, the FCG, have done really well. But, the oil and gas companies, especially the the Schlumbergers, I still we still I think Schlumberger is like the best artificial intelligence play in the world because of their artificial intelligence capabilities around offshore drilling and oil services.
In short: Natural-gas equities "really breaking out" vs the S&P with great valuations — the "power" side of the AI trade.
FCG is a fund holding natural-gas companies. McDonald says these stocks are "really breaking out" — outperforming the broad market — and still cheap.
His thesis: data centers for AI need huge amounts of power, and natural gas is a cheap, ready supply. So gas is the "power" side of the AI trade — owning the fuel behind AI rather than the chips.
5:54If you look at the FCG ETF — and the outperformance of natural gas equities versus the S&P, they're really breaking out. Great valuations. You've got a lot of trapped gas in Canada, for example. Companies like Tourmaline. Imagine you've got really cold weather in Canada. You've got gas in Texas and in Canada because it's trapped.
In short: Beautiful FCF, buybacks, outperforming the S&P; gas (and the MLPs inside it that transport it) is a "foundational AI trade for 5–10 years" — not the chips.
FCG holds natural-gas companies, including the pipeline operators (MLPs) that physically move gas around the country. These firms throw off lots of cash ("free cash flow" — the spare cash left after running the business and investing) and are using it to buy back their own shares, which boosts the value of each remaining share.
His twist on the AI story: everyone chases the chip makers, but the real bottleneck for AI is electricity. Data centers need enormous power, and natural gas supplies it. So he calls gas a "foundational AI trade for the next 5–10 years" — owning the fuel and pipes behind AI, not the chips.
20:57And we've never seen rate hikes in the UK with unemployment this high. So you're talking about really 1970s type action. — In your book you talk about really focusing on free cash flow, dividends, unloved areas. I'm assuming you still feel that way. Absolutely. The natural gas names have beautiful free cash flow yields. Companies are buying back stocks aggressively. Look at the FCG — really starting to outperform the S&P right now.
In short: The natural-gas-equities trade for 2026 (the Palm Beach ideas-dinner consensus); data centers move to the gas in northern Texas.
FCG is a basket of natural-gas company stocks — a one-click way to own the whole nat-gas-equities theme. He says this was the consensus 2026 idea at his Palm Beach investor dinner: data centers are being moved to where cheap gas is (northern Texas), and U.S. gas exports are booming.
28:25Those 820 data centers supposed to be built over the next five years, they're taking them out of NIMBY locations and moving them near the gas assets in northern Texas. We had an ideas dinner in Palm Beach last week with legendary investors and this is what went around the table — natural gas equities. That's the FCG ETF. Reach out to info@thebeartrapsreport.com.
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