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.