Quote:
|
Originally Posted by project15
The price of oil has been declining these past few months. Is it possible and/or wise to invest in oil companies? I'm pretty sure the price of oil will probably increase again in the near future. What's wrong with this idea?
|
One mistake you are making here is equating the profitability and/or stock value of oil companies directly with the current price of oil. If you are looking to buy low and sell high, a change in oil prices does not necessarily have a corresponding change in the stock value of any given oil company(ies) or the sector.
What some speculative investors are doing at this time is investing in oil futures. This is what you may be after.
link