Energy Investment

[HFWR]

I think I'm late to the energy party. Last time oil hit $140, the world economy went into the dumper, precipitating the Great Recession. A look at VDE's chart indicates we at levels similar to just before then...

VDE Basic Chart | Vanguard Energy ETF Stock - Yahoo! Finance

 

[chinaco]

I think I'm late to the energy party. Last time oil hit $140, the world economy went into the dumper, precipitating the Great Recession. A look at VDE's chart indicates we at levels similar to just before then...

VDE Basic Chart | Vanguard Energy ETF Stock - Yahoo! Finance

If $140 is the mark... there is still quite a way to go. It is about a 30% increase from today's price on light crude.

 

[chinaco]

Although earnings have probably been priced in... the windfall will begin showing up in the bottom line.

Booming crude-oil prices and improved refining profits are poised to put a firecracker under Big Oil's first-quarter earnings and set the stage for a year that could come close to rivaling the industry's record year in 2008.

Energy Earnings Prepare for Liftoff - WSJ.com

If more retail investors take notice... maybe it could turn into the big MO.

The party always ends sometime. Still contemplating keeping it tactical [-]timing[/-].... I could always... ride the wave, get off before the tide goes out, look for the next big wave....

 

[rescueme]

I agree with both authors that energy is a good investment theme.

Although DW/me have a good deal in companies such as Chevron, ExxonMobil, et al we do so as part of our funds - we don't hold individual companies. These oil companies are part of our FUSEX, FEAIX, FPURX, VWIAX, and FBALX, for example.

While these holdings have "risen to the top" in value of our holdings, we also realize that their gains are offset by companies in the funds we hold - that are impacted to their transport costs due to the increase in price (and perceived profits).

It's more of a balancing act. Take some; give some. In the end (for broad based investors, as we are) it seems to be a wash.