Gearhead Jim
Full time employment: Posting here.
In previous months we've discussed the idea of buying an ETF to profit or protect from rising gas prices in the future. Even if economic activity and the stock market stay down, oil seems likely to rise in coming years because of the current reduction in exploration.
In the past, oil company or other industry stocks have been a proxy for actual oil. But the current administration is likely to be really tough on them, I could easily see oil prices doubling while profits stay flat or even decline.
I've got two questions:
1. Which ETF to use? USO seems most popular and folks here have bought it, but the contango problem seems to mean you'll lose money if the price stays flat or rises only a moderate amount. USL seems to avoid most of that problem, and then there's UGA and DBO. Which one do you recommend and why?
2. My investments are all IRAs at Vanguard, how would I buy one of these ETFs through them and keep it in the IRA?
In the past, oil company or other industry stocks have been a proxy for actual oil. But the current administration is likely to be really tough on them, I could easily see oil prices doubling while profits stay flat or even decline.
I've got two questions:
1. Which ETF to use? USO seems most popular and folks here have bought it, but the contango problem seems to mean you'll lose money if the price stays flat or rises only a moderate amount. USL seems to avoid most of that problem, and then there's UGA and DBO. Which one do you recommend and why?
2. My investments are all IRAs at Vanguard, how would I buy one of these ETFs through them and keep it in the IRA?