Assetology

ETFs For When Oil Falls

There was a considerable amount of money to be made on the recent and profound adjustment in crude oil prices. The low of HOD was $6.30 on the 11th of July with a subsequent high of $53.70 on December 5th. This represents an 850% change in less than 5 months. Anyone who has previously stated that oil prices reflect supply and demand should be hiding their head in the (tar) sand. Clearly this was speculation and manipulation rather than a price increase in lock-step with demand.

Is there opportunity to ride HOU up? Unfortunately, I think the increase in oil will be a little more prolonged and subdued than the drop and a long-term investor is far better off buying a solid energy company.