Whether it makes financial sense or not, this is to me a good psychological reason to have some investments that are highly correlated to the price of oil and gasoline. Somehow the rise from $2 to $3 per gallon doesn't feel as hard to take when you have some investments that are up considerably because of it. And if the value of those investments dropped, you have the silver lining of less pain at the pump.Thanks for posting. I enjoyed his analysis of oil and how one should have a significant position in oil as a hedge. I feel exactly as he described when going to the pumps and having to pay a higher price. It's not so bad as my oil stocks are doing well.
Precisely why I bought USL in Feb of 2009. Wish now I'd bought more...Whether it makes financial sense or not, this is to me a good psychological reason to have some investments that are highly correlated to the price of oil and gasoline. Somehow the rise from $2 to $3 per gallon doesn't feel as hard to take when you have some investments that are up considerably because of it. And if the value of those investments dropped, you have the silver lining of less pain at the pump.
Of course, this works best if you're a "glass half full" type and not a "glass half empty" type.
I feel obligated to point out that another approach to the problem, both psychological and financial, would be to try to use less oil & gasoline...Whether it makes financial sense or not, this is to me a good psychological reason to have some investments that are highly correlated to the price of oil and gasoline.
Of course, this works best if you're a "glass half full" type and not a "glass half empty" type.
And I'd feel obligated to further point out that the two are not mutually exclusive!
Yeah, but I didn't mean to take the whole economy down with it.....Wasn't Ziggy the one who broke the last oil/gas price bubble for us?
Yeah - but that didn't bring down the economy. The housing bubble/CDOs did. You didn't buy a house at the time or buy some CDOs at the time did you?Yeah, but I didn't mean to take the whole economy down with it.....
