Q.
Should i invest in oil stocks in the stock market game?
Asked by Apoorva,
20 Apr '10 10:58 pm
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Answers (2)
1.
On One Hand: Invest in Trends
The oil market is highly volatile, and investing in an oil stock can be tricky. The smart investor will base oil stock investments on broader economic trends. Generally, if the price of a barrel of oil is trending upward, then invest in oil stocks.
On the Other: Beware of Green Gold
Cap-and-trade legislation and other laws that support energy alternatives may erode the long-term value of an oil company. Thus, the real value might not be in Exxon, but in Vestas Wind Systems, the world's largest wind turbine manufacturer.
Bottom Line
Green energy investments are unlikely to erode the importance of oil to the global economy in the near future. If oil is increasing in value, invest in oil stocks.
Answered by jameel ahmed, 21 Apr '10 10:27 am
The oil market is highly volatile, and investing in an oil stock can be tricky. The smart investor will base oil stock investments on broader economic trends. Generally, if the price of a barrel of oil is trending upward, then invest in oil stocks.
On the Other: Beware of Green Gold
Cap-and-trade legislation and other laws that support energy alternatives may erode the long-term value of an oil company. Thus, the real value might not be in Exxon, but in Vestas Wind Systems, the world's largest wind turbine manufacturer.
Bottom Line
Green energy investments are unlikely to erode the importance of oil to the global economy in the near future. If oil is increasing in value, invest in oil stocks.
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