[1cleanm6]

Hey there folks with the gas prices going up is anyone going to be investing in gas stocks..if so what kind. Sorry im a newb and want to know what is the best one.

[stooken]

you mean oil?

[Couch]

I've heard "experts" say buy buy buy. With blue chip stocks you really can't go wrong though. I suggest reading and watching CNBC. That way you'll get various opinions and then can do your research and go from there.

I'm currently looking at investing in several 'alternative' energy source companies. Namely windmill companies, and the companies that manufacture products for those companies.

Unfortunately the timing of beginning that search, and now having to work crazy hours at work have that on hold.

[Brunotheboxer]

oil is a bubble that will eventually burst. Its too late in my opinion to invest in these stocks because demand will fall. Find something else to invest in if I were you.

[jlspeed29]

Originally Posted by Couch

I've heard "experts" say buy buy buy. With blue chip stocks you really can't go wrong though. I suggest reading and watching CNBC. That way you'll get various opinions and then can do your research and go from there.

I'm currently looking at investing in several 'alternative' energy source companies. Namely windmill companies, and the companies that manufacture products for those companies.

Unfortunately the timing of beginning that search, and now having to work crazy hours at work have that on hold.

I dont quite agree with you with regards to "cant go wrong" with blue chips..if oil keeps going up, which it will...it will crush the markets, probably not in one blow but slowly....
finance.yahoo.com my friend.....

goddam oil!!!!

[AndrewAZ]

Originally Posted by Brunotheboxer

oil is a bubble that will eventually burst. Its too late in my opinion to invest in these stocks because demand will fall. Find something else to invest in if I were you.

X2.. Right now buying oil is stupid.. Like said I think its a bubble and its mostly speculation that is adding $40-50 a barrel and that will end soon like the housing speculation.. Dont get caught overpaying and buying at the peak of the market.


Right now would be a great time to invest in a market that everything thinks is crap.. AKA housing or real estate, I would suggest doing some research on homebuilders partly because they have dropped to near rock bottom prices and the land they own is worth more than what the stock market is valuing them at.. Also REITs are another forum, but at the moment homebuilders seem to be the best bet like I said find a few that hold a lot of land that is undervalued.

[mrwma237]

Sure there is a lot of speculation money flowing into the commodity markets.

However, many analysts said that the oil market will burst when it was at $80 a barrel.

I think oil is highly correlated with the US $. Americans use so much oil, to not cut into the gross % of these overseas oil producers selling in the US, drives up the prices.

[Couch]

Originally Posted by jlspeed29

I dont quite agree with you with regards to "cant go wrong" with blue chips..if oil keeps going up, which it will...it will crush the markets, probably not in one blow but slowly....
finance.yahoo.com my friend.....

goddam oil!!!!

Very true. And unfortunately I didn't articulate a more precise answer. I agree with what's been said. I was speaking very general with blue chips, not limiting to oil, albeit that was the question.

For example, I sold half of my Exxon stock in 2007 at somewhere around the $90 mark (I can't recall the exact number). Not long after it dropped dramatically, then went back up. I recovered what I took out and made more. I wouldn't buy Exxon currently. It will start dropping again after it hit's the high $90-$100. Or if they feel it's time they'll split the stock.

[AndrewAZ]

I guess what should be said is yes you can still make money, but you wont make as much as if you invested 2-3 years ago. The potential for anything big happening is low and the odds are it will have no growth in terms of price rise and will probably decline after a while.. And right now you can find better opportunities which have more potential for growth with less risk. Oil is a hot market and near peak, its time to find the next oil market thats where the money is.

[sinnet112]

One company that benefits off of high oil prices is Apache (APA). Look at the one year chart and you'll see what I mean. That being said, I also think it's a bubble and I'm not sure if now is the best time to invest in it. I wish I had bought Apache a while back, I always had my eye on it just never jumped in!

[Couch]

Originally Posted by AndrewAZ

I guess what should be said is yes you can still make money, but you wont make as much as if you invested 2-3 years ago. The potential for anything big happening is low and the odds are it will have no growth in terms of price rise and will probably decline after a while.. And right now you can find better opportunities which have more potential for growth with less risk. Oil is a hot market and near peak, its time to find the next oil market thats where the money is.

I think I'm going to refrain from posting anything that requires an intelligent answer for the next few weeks. These long hours and working weekends take their toll on the mind. When I see the computer screens when I finally close my eyes for the night, I know I've lost my mind.

[RBP]

If you think oil is going higher, buy ticker: USO it essentially tracks the price of oil directly and you don't have the operational risk of an underlying company.

Ticker DIG is twice the performance of the DJ Oil & Gas index if you want to add some octane to your investments.


If you think oil is going lower, buy ticker: DUG It is twice the inverse of the DJ Oil & Gas index (it's like shorting oil at 2 times the rate)

UNG tracks Natural Gas

I would stay away from refiners (Valero, Tesoro and others) since crack spreads are narrowing and are going to hurt these guys.


LOTS of people are convinced we are going to hit $150 a barrel for all sorts of reasons. Today oil is around $137

[TSM330i]

You may want to consider MLP's. Master Limited Partnerships are a good source for dividends and they're doing very well.