toobad41

Oil as a Deflationary Investment

They don't call oil "black gold" for nothing. It is a great hedge against inflation and deflation. I am not sure about its effect on stagflation. Whether one invests in oil or natural gas as commodities or as common stock or energy select mutual funds you can't go wrong. The petroleum industry has been, as everyone knows, very cyclic. With that said it is not too difficult to buy the lows and sell the highs. The cycles, however, are broader than what day traders like but they are there. You just have to have patience. Oil and Natural gas service companies are another area to look into. They are all in the business together and generally move in the same direction.

Where Can We Make Profits?

The old adage of "if you don't know where you are going you will end up some place else" is appropriate for investing. You are absolutely correct in having a plan. That plan needs to be focused on one segment or sector of the market. Become an expert in one area and make that your focus. Make that your road map to profitablity. In the distant past my investing was like being a "grasshopper" jumping from stocks to bonds to commodities...hoping to hit on something big. That does not work. If your interest is in oil commodities, REIT's, banking, pork bellies, corporate bonds, or whatever make one a focus and learn everything you can about that which really interests you. Then once you have a tremendous amount of knowledge in your chosen area of interest you build your plan to make a profit. Never, ever be a grasshopper. Stick to one area of interest and reap the rewards. Forget the rest, don't follow the crowd.