News of the street is that crude oil is at 21 yr low and falling. Would you invest in atm?
Is there a better option than investing via OOO - BETASHARES CRUDE OIL INDEX ETF-CURRENCY HEDGED.
Would You Invest in "OOO" a Crude Oil Indexed Fund?
d-hunterz on 21/04/2020 - 10:41
Comments
I might actually consider this. From April 1st to now it has gone up by 53% in terms of people buying.
Make sure you read the T&C first. It's a very risky EFT as I understand it, As it does not track Spot price but rather future price.
Can you ask Trump , Putin and the Saudi's what their next moves are going to be ?
Unfortunately its all based on speculation of their moves and some insiders get the great action :) But we know there is a huge glut of oil on the market and in storage so play around that .
I was looking at this last year - if the AUD:USD currency is super weak, then the chances of the AUD strengthening are higher right? So the Hedging aspect of that ETF will have a greater impact than the Oil price changes..that is my thought. Or at least will diminish the gains significantly.
I've worked with the dollar at 48c. It can go a lot lower than the current price.
Especially if Iron ore comes down.
Last night some poor traders though some futures wouldn't go below 0 and got wiped out with negative oil prices . They paid for the privilege of people storing oil . Just over $1 now for WTI Crude .
Yeah totally, oil just hit negatives…
Just stockpile barrels in your shead
OOO? I'm looking at DTO. Get in and get out.
I like to call activity like that gambling.
The only sound way to gamble is using other
sucker'speople's money.That's because in the long term no one has outguessed monkeys throwing darts at lists of stocks - unless they tracked the entire market using an instrument with no fees whatsoever.
The vehicle to achieve that is a an index fund tracking a large slice of the market where you own the fund so there's zero inventive for fees.
Note that almost all worker's superannuation is not in an arrangement like this. They pay fees. Even tiny fees are a disaster for long term compounding.
sold out on WPL this morning, price had a minor plummet and it's back up $20 again. i made a tidy little profit, and my plan was to buy back into WPL again when the prices fall further, i'm surprised it's holding at $20 despite the news. Can any savvy investors explain this phenomenon?
yes that just looks to drive a fall in oil stock value. aside from managing consumer expectations through gradual barrel price drops since Feb, surely a negative price would be a significant enough event to propel a steeper fall. i just don't see why WPL prices are holding up so well.
The futures contracts due for immediate delivery were priced negatively. Brent crude is still at $25ish.
Found some good info here, reading this I would never be investing in OOO.
https://www.reddit.com/r/AusFinance/comments/g4s6fx/why_the_…
If you trust USA is still playing a significant roll in the world, you should have the faith that oil price will not stay this low for long. Shale gas company in USA won't survival with the current price. Huge capitals in Shale gas industry will be wiped out. My 2c is something will happen to lift the oil price.
Playing with volatile commodities is not a rookies game. Don't get advice for this sort of stuff from OzB IMO.