October 19, 2018
It’s not often I really get excited about a particular investment thesis, but I am writing this very, very short post to say that buying an Oil ETF looks like a really good bet right now.
There is a lot of talk about oil prices coming down, but there is mounting evidence that there is not enough supply and no or very little capacity to increase supply. If that is the case, then economics suggest that prices must rise to reduce consumption and increase the incentive to find and pump more oil.
I will post more another time, but if you don’t know what to buy, find an oil ETF and park some money there. Be aware that the market is still looking very toppy, and so a drop in markets could unsettle the trade, but oil demand is not very elastic, so owning a broad range of assets should be a decent shield from a downturn.
