Oil Remains A Hot Investment

Published by admin | Filed under Finance Connect

I think we all know that gold is a solid investment for one reason. That reason is that gold retains its value well in trouble times. I think we can start making the case for oil as well. I know a lot of our problems seem to stem from the oil market, but while others struggle with the surging prices of oil; oil itself stays above water.

Now I have heard some experts say that the Earth will be totally dry of oil in 25 years. I’m not sure if that is true or not, but I think we can all agree that we are using it faster than we can produce it. I’m not sure what Mother Earth’s capacity is, but the need for oil has never been greater. When our gas prices soar at the pumps, we decide to eat out less, buy less things at the supermarket, miss that trip to the movies, or some other cost cutting measure. The funny thing is that when gas prices go up, none of us ever decide to drive less. This is where the oil companies rack up. They raise the price of oil and we still drive our cars just as much and find other things to cut out in our lives.

They say if you can’t beat them; you might as well join them. So that is what I’m going to do and I’m looking to invest in oil. I see one ETF that looks promising and had a good day today on Wall Street. The United States Oil Fund appears to be somewhere you can stick your money and make a little right now. Please be sure to look this ETF over closely before you make any sizeable investments. If you have a few hundred dollars you can stick into an ETF over the next 6 months, you might want to try the United States Oil Fund. The ticker symbol is USO and it soared to over $73 a share today. I’m not scared of that sharp rise and I would be willing to buy this ETF for the next couple of years, as long as the price stays below $94. If you can get in on this ETF for under $94; you might want to add a few shares for your portfolio. The long term of this ETF looks really good. The oil market is very volitale and this isn’t a short term investment play. I would invest monthly in this until the end of 2008, as long as my target price of $94 isn’t reached. I would like to reevaluate it at the end of 2008, to see if I wanted to continue putting my money here. So if you want a piece of the hot oil market, take a look at the United States Oil Fund (USO).