Low oil price investment

[Deleted]

If you thought the price of oil would go back over $100 how would you invest?  In what?  thanks

[Ombud]

What makes you think it's going to $100??

[Deleted]

it always does

[Blonde Granny]

The price of oil has no relationship to how I invest. Just adjusted our portfolio to be a little more conservative, so our focus is on safety at this point rather than oil prices. What would concern me the most is if inflation took off as it did back in Richard Nixon and Jimmy Carter days. 

[Ombud]

Blonde Granny, me either. One has to consider whether oil will go that high in real dollars. There's better places to put the money

[Deleted]

so back to the question,

If you thought the price of oil would go back over $100 how would you invest? In what? thanks

[Ombud]

SPY. BC then the entire market had a substantial increase

I don't recommend individual stocks to those unable to do charting so they cannot come back & be upset at me if it dn pan out

[clarkrl2]

Drilling and exploration companies will do well with high oil prices. The downside is they could go bankrupt at the current prices. A company like RIG (Transocean Ltd.) should benefit from rising oil prices and there are many others in the drilling and exploration industry. These companies are extremely risky to buy when oil prices are falling.

[Deleted]

Aug 8, 2015 12:44:32 GMT -5 clarkrl2 said:

Drilling and exploration companies will do well with high oil prices. The downside is they could go bankrupt at the current prices. A company like RIG (Transocean Ltd.) should benefit from rising oil prices and there are many others in the drilling and exploration industry. These companies are extremely risky to buy when oil prices are falling.

thank you.  I am looking for something that will most likely not lose principal, but has a high upside.  I guess all want that.  

Could oil lose 50% and sell for in the $20s?  I know anything is possible, but is that very likely at all?  I think it could double as it has been at that price many times.   It the whole thing more complicated than that?

[Deleted]

I am looking for something that will most likely not lose principal, but has a high upside

The fact of investing is that any (and every) financial instrument can lose money. If you put your capital into something, there is always the risk of losing that capital.

It is also a fact in investing that any (and every) financial instrument has the potential to appreciate in value.

The Ultimate Truth in in investing is that there is ABSOLUTELY NO WAY to know for certain, which of the above will be the outcome; in relation to any financial instrument in which one invests capital.

When one invests capital; they could gain or lose ground from that point.

[Ombud]

A friend once said to plan the exit point whenever buying ... for most that would be a 5% drop. In other words, I'm ok with losing 5% on 90% of the stocks I buy

I doubt Saudis will let oil dip to 20s

[tyfighter3]

If your looking at long-term, XOM, COP, The majors and look at some pipeline and storage Companys that pay good dividends. JMO