Monday, July 26, 2010

If oil is set to rise would buying of oil companies stocks be a good move?Will i lose or profit?

First of all you can really buy crude oil unless you are a commodities trader. I suppose you could buy commodity futures, but that involves a lot of risk and i mean A LOT. It is usually safer to invest in stocks. However, even though oil is or will be on the rise, doesn't mean Oil companies' stocks will follow. The reason for that is that we already saw stocks of oil giants (Conoco, Exonn, etc) go up by quite a bit. This rise already factors in itself any future price increases in crude oil. Thus, even though oil will go up, stock price will be pretty much flat.If oil is set to rise would buying of oil companies stocks be a good move?Will i lose or profit?
No.





If you believe Oil will rise then you buy the Oil itself.

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