Crude oil prices are through the roof. Here's how you can profit on high oil prices.
Decide how you want to make money through investments in energy stocks, mutual funds or stocks. Stocks are the riskier play, but have the higher potential. Mutual funds are a better move if you have smaller amounts of money.
If you wish to invest in individual energy stocks, go to a site like Google Finance and look at the energy sector. Do your research and find companies with good profit margins and high leverage to expensive oil.
If you wish to invest in mutual funds go to Morningstar.com to search for some of the best performing energy sector mutual funds. For example the Vanguard Energy Fund has returned 34% on an annual basis in the last 5 years.
Keep a close eye on supply and demand for crude oil after making these investments. If the principles of your investment thesis change, you have to be ready to sell some or all of your trade.
- Crude oil is already at an all-time high and some believe the bubble could burst, be careful!
No comments:
Post a Comment