buy oil (energy) stocks now

[Fly2Scuba]

Looked at a financial newsletter the other day with dire predictions on cheap oil prices. Basically the world is going to run out of oil in 2029 based on present consumption predictions. China alone used 30% more last year compared to the previous and that's one giant expanding economy. According to the newsletter, significant buying and driving habits won't be affected until prices hit a national average $2.50 a gallon at the pump and prices are headed in that direction. Best mutual = Vanguard Energy in my opinion. It's Hillary's fault. By the way, if I see Ketcup prices go up; Kerry gets the blame.

 

[labbats]

You can't buy pencil stock before school starts and expect to make a killing when you sell it soon after the kids end their summer vacation. Stocks look forward and anticipate every angle. It's a lot like a sportsbook in Vegas. These guys know every in and out of a business and you're not betting on a win/lose as much as a spread. That's a little tougher to gauge, and oil is no exception.

 

[SteveR]

Honestly, if oil supplies go so low that prices jump 5x in the next 20 yrs, I think we won't be too concerned about stock prices. Just my .02.

labbats, don't you think that as a long-term investment, oil companies might be a better than average investment?

 

[labbats]

I don't know. Something run by OPEC won't get my money. I'd personally stay away from it. Yes, the price may go up from supply/demand, but that doesn't necessarily translate into stock profits. They have to cut production to achieve the higher costs, so instead of selling 1 million barrels at $100 or so, they sell 1/2 million barrels at $200. The end result isn't necessarily profitable.

 

[jarhead]

If the Saudi Government is getting the cash from Mobil/Exxon, et al, how does that translate into growth in an oil stock mutual fund? I don't see how that works. Prince Abdul Sultan Faud just buys a few more Gulfstream V's and a few more stretched Mercedes limo's. Maybe you'd be better putting your investment dollars in things like that....cars and planes (tic).

On the other hand, the companies that make drilling equipment might not be a bad investment, as when the price of crude goes to $40 a barrel, that's a big incentive to go drilling for the crude in the deeper places. Oil producers, foreign and domestic, need that kind of equipment, and that stuff is not manufactured in Arabia.

 

[Mogus]

Oil is a horrible investment. If you're looking for a long-term growth strategy, consider foreign markets, most of which have been around longer than that of the U.S and have often outperformed it drastically. To really be safe, have a diversified portfolio consisting of 80% foreign investments and 20% invested in the U.S.