Etf Oil Funds
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Arthur Said:
Oil up 80% from lows. The Crude Oil ETF is only up 35%. Why?!?We Answered:
are you looking at the same time period?Dianne Said:
Does any know if there is a MUTUAL FUND, not and ETF that tracks the price of oil? ?We Answered:
all mutual funds are a collection or basket if you will of stocks. In these financial instruments there is no leverage or tracking of volatile commodities. On the plus side only 1 mutual fund made money in 2008 meaning there are opportunities everywhere for you if you just look.Andrew Said:
What are some best stocks to SHORT tied to an OIL bubble burst?We Answered:
I was going to suggest USO until I saw the second part of your questions excluding ETFs. IMHO the oil bubble has been most strikingly seen in the commodity itself. Sure Exxon and big oil companies have had a nice run, but not like the commodity. I suggest shorting some of the alternative energy stocks if you truly believe oil is heading for a dive. Many of these companies have seen tremendous runs with the rise of oil not to mention they are getting al ot of airtime for their limited profits. First Solar comes to mind. But honestly I know nothing about the company, only that I hear the name mentioned on a regular basis on CNBC. I own DUG myself. A short ETF on the oil and gas services companies. It has actually held up quite well over the last 3 months, even with oil rising.Cathy Said:
Investment strategy in oil?We Answered:
I think that would be a really fatal strategy. If this strategy is used, it is likely you'll either tie up your capital for a long time or loose big time in this investment.Oil price at $45 is still high. While it has fallen off it's high of $147 from Jul 2008, let's not forget that it was lifted off from below US$10 after the previous recession.
Now, we're talking about a DEPRESSION that's happening here. If history is any teacher, a depression is not going to go away that quick. Furthermore, this time, the effect of this downturn is not only in specific regions, but globally. Most countries in both emerging and developed nations are already in recession, thus this will greatly reduce the demand on oil. These economies are slowly edging into depression.
Now, OPEC will try to artificially reduce supply in order to sustain oil prices. However, this is likely only to have limited impacted on where oil prices is heading in the next 3-4 years. Why? Because the fall in demand will be much greater than their cut in supply. Furthermore, they cannot rush their supply cut because they have to fund their budget, which was previously based on sky high prices of last year.
So, what would be the action to take? For an active investor who watches the markets, it might actually makes more sense to short oil currently. Now if you're still firm about oil prices not falling below $25, you face lower risk to short it now from $40++ to $25. Thereafter you may re-assess the situation and see if your previous idea hold true.
I wish you good luck in your investing!
Cheers.
Stephanie Said:
ETF fund dissolves bankrupt 0 value per share. DCR?We Answered:
I read that the fund has more than 1.5 billion, but how much I don't know. It is most probably that all these assets will go to honour the fund liabilities, which make the NAV around 0.This article may have enough details you may be interested in reading:
http://biz.yahoo.com/pz/080626/145367.ht…