No. I have no interest in them. A gather you think something is wrong with my strategy of buying when the price is getting toward a 10 year low?
Correct. But this is a discussion forum, so if you have a strategy on oil, perhaps you'd like the share?
The problem is that there just isn't much on the horizon to bring it back. Even if the Iran deal doesn't go through they have promised to keep talking and if they do have something to announce then it could be a big hit. If China keeps going south or Europe has a heart attack you could see it go lower. If the dollar keeps going higher it will go lower. Just seems like a lot pushing down without much on the upside. If ISIS takes Baghdad though you'll make us all look stupid.
That's the thing, I don't buy oil because I see some trend on the horizon to bring it back up, I buy because I know there are plenty of of triggers that can cause a rapid price increase, wait for one of those and then you cash out. If there is one thing apart from fiat the world is still addicted to, it's oil. Enough so for countries to fight wars over its control.
That's a fair point. If you're buying and you're happy to DCA and wait then it's probably not a bad strategy. I suppose the question was just why today. Today is fine (better than yesterday), just not to jump in whole hog, though you didn't say you were doing that to be fair.
No, certainly not filling up the tanker at this stage. Likely has a fair bit of downside left. Was looking pretty stable there for the last 3 months, now plummeting again. Just giving everyone a heads up. I made a good 20% on a good lot of it on the last little ramp up back in April.
I like oil because there is probably a 99% chance America will invade another oil producing country in the middle east before the end of the year, they always do.
In Australia it's easy, just buy the exchange traded fund OOO on the ASX, just like any share. http://www.betashares.com.au/products/name/crude-oil-index-etf-currency-hedged-synthetic/
If you want to buy big positions on the cheap then you could try buying oil CFD's. Let's you get a sizeable position relatively cheaply (just make sure your not leveraged dodirectly in to oil without having to go through a company that might have it's own problems. It also means you can buy Brent, WTI or some other type if you favor one over the other. Alternatively you can buy an ETF, either of oil directly or a basket of oil companies that will reduce your exposure to any one company.
i'm interested in the oil etf. i have been watching it a little while. i do have an understanding of ETF's but what are the risks for investing in OOO? can it go to zero? how do etf's like this perform in a market crash ? Is there leverage involved? what companies are they holding in that basket ?
Mirae Asset Global Investments Group, the company that own Betashares and the OOO oil etf could go bust, but there are risks with any investment
Suggest you read the relevant PDS for OOO which will identify the risks - it's up to you to accept or manage those risks. Could the OOO ETF go to zero - theoretically yes, if the price of crude oil also goes to zero. Unlikely.
One problem that I've been noticing with ETF's and other ASX listed ETP's is that there isn't enough liquidity for all of them to track accurately. I looked into the platinum ETF recently, on a day when the price had gone down a few percent in the last few days the price hadn't moved.
