If you had 20k to invest in the stock market, what energy and oil funds would you go with?

Answer 1

Not sure I would use a fund. Vaalco Energy (EGY) tops the list of Businessweek's 100 Growth companies. Almost doubled sales in last three years, almost tripled profits in the same period. It has a Price/Equity ratio of 12 (which is to say it definitely is not overbid) and has a 37 percent return on equity. Recently selling at 8-1/4, your 20k could buy about 2,400 shares and you will still have change left over after commission. The trend line is still up so you wouldn't be bucking anything. Give that one a thought.

Answer 2

If you do as one person suggested i.e buy a fireproof safe, you will actually lose money due to inflation. If you want to grow your funds, then buy into a low cost mutual fund ( low MER [Management Expense Ratio] with no load ). If you read any investment book, they will tell you that the S&P 500 index has averaged 10-12% (some say 10% some say 12% I'm not really sure what costs they calculate in order for the calculation ). I've read one person state that inflation has averaged about 4% so you really need about a 6% return in order to keep ahead of inflation and continue to grow your funds. If you buy a mutual fund that tracks the performance of the S&P 500 index then you should receive about the same returns that the S&P 500 pays out. Any of the books and websites I've read, they all frown on stock trading, as you have to pay commission (amount will change with the broker you choose) for each transaction. Buying and choosing stocks based on what analysts say is a very poor choice. In one of my investments, I am holding a REIT ETF ( Real Estate Investment Trust - Exchange Traded Fund ) and the price of this fund is increasing, and all the analysts are saying that they strongly suggest to buy. However if real estate is in a bubble, ( a bubble is when a stock sells for more than what it is worth -the South Sea bubble is a good example ) then those people will lose a lot of money. I won't because I waited until I saw that it was at a lower price that it had been recorded in a five year period. Of course there may not be a bubble, but then you can't really know until the bubble pops and the stock sells for what it's supposed to. If you are still set on buying stocks then I would suggest that you look at what stocks the S&P 500 buy and try to follow their methods, or you could just search what the highest profiting companies are in your country. If you do that, there won't be much room for growth so remember to diversify and you could try to find sturdy companies that are up and coming but that would be nothing more than just speculation. Another note, if you don't already have something in place, you might consider having an emergency fund, any book that I've read has suggested you keep 3-6 months of expenses in cash on hand before you do any investing.

Answer 3

It would be very unwise to invest the whole 20k in energy and oil. The future is just too uncertain. Maybe 4k and that is 20%, a very great portion of your total. There is currently a shortage of oil refiners so maybe FTO or VLO. Those two will be less subject to congressional wrath also. Maybe NBR. And here is an interesting one for you to consider: VWSYF--wind turbines. And it is not denominated in dollars. So with the continuing collapse of the dollar you will be insulated in that respect. Maybe invest a little in the Chinese oil company PTR. Just hit a new high. Take the rest of your money and invest it in non U S denominated stocks. IIF is a fund that invests in India. SWZ is a fund that invests in Switerland. CHN is a fund that invests in China. Get the idea?

Answer 4

I would invest 5k in reneweable energy. the dems are going to tax the oil corps again thank god! pick an american fund but her is a tip invest in the SP 500 or Diamonds Index. Aks a bank about them. after 911 when everyone i know lost i keep making small gains. You invest in the dow jones index it never loses.

Then buy some US treas bills. us saving bonds for safety, some land or good rental property.

keep 6 grand for savings in savings and a cd.

Answer 5

United Technologies - they are doing good hydrogen fuel cell research along with other energy sources development.

Answer 6

I would put 5K in bonds to cover the taxes and would buy land

10 acres somewhere, Maine probably

would be 100K in ten years

Answer 7

Try Ethanol.. I have invested in Ethanol Companies and have seen a 36%ROI.

one company that is up and comming is www.midwestethanol.com

Answer 8

XLE, it's an ETF that covers the energy sector.

Answer 9

There are companies deep into exploration... I would hit them up ...actually I am hitting them and making out quite well.

Answer 10

A good oil and gas ETF is XLE.