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re: Is "smart money" piling into oil once the calendar flips to January?

Posted on 12/29/15 at 12:32 pm to
Posted by LSU0358
Member since Jan 2005
7920 posts
Posted on 12/29/15 at 12:32 pm to
quote:

I don't think you can just make a blanket assumption that since the last oil bear lasted 20 years that this one will as well.


It's as good a guess as any. Commodities in general have 20 year bear markets followed by 10 year bulls. Gold does it, grains do it, softs do it.

I think a lot of it is driven by currency cycles, but that's just a theory.
This post was edited on 12/29/15 at 2:20 pm
Posted by yellowfin
Coastal Bar
Member since May 2006
97749 posts
Posted on 12/29/15 at 2:27 pm to
I was just curious, I have no idea but if I agreed with the 20 years I'd jump ship to another industry tomorrow.
Posted by thedogman
Member since Dec 2008
2244 posts
Posted on 12/30/15 at 11:10 am to
Might be a stupid question, but when you say invest in Oil are we talking investing in major production companies or are there funds that are considered Oil Funds. I am not investment savvy so sorry if this question comes off as naive
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37196 posts
Posted on 12/30/15 at 11:49 am to
quote:

but when you say invest in Oil are we talking investing in major production companies or are there funds that are considered Oil Funds


Not stupid at all.

A pure play would be a speculative fund that tracks the price of oil and gas.

You could also play a company in the industry. While oil and gas prices will be a factor, there is also the whole running the company factor. Different companies are set up to perform differently in certain situations.

A fully integrated major probably is a safer bet, with less risk and less reward.
Posted by thedogman
Member since Dec 2008
2244 posts
Posted on 12/30/15 at 12:10 pm to
quote:

LSUFanHouston


Thank you that makes sense.
Posted by RidiculousHype
St. George, LA
Member since Sep 2007
10230 posts
Posted on 1/1/16 at 11:52 pm to
quote:

Could you give insight into why this would happen?
TIA


Basically, this:

Posted by I Love Bama
Alabama
Member since Nov 2007
37746 posts
Posted on 1/7/16 at 9:25 am to
Don't want to start a new thread....


When do we jump into this?
Posted by TigerDog83
Member since Oct 2005
8341 posts
Posted on 1/7/16 at 10:04 am to
quote:

When do we jump into this?


Why catch a falling knife? Wait for a bottom and play the other side if you want to play this. I would imagine that timeframe could be towards the back half of 2016 or 2017 as the market has not balanced yet.
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21057 posts
Posted on 1/7/16 at 1:23 pm to
I mean, if you are going long it seems like a decent play to find a good dividend oil stock and just hang on for the ride

But, I suppose that depends on your definition of long

We have talked about trying to accurately time the market in here a lot....if everyone knew the perfect time we would all be ballers
Posted by RidiculousHype
St. George, LA
Member since Sep 2007
10230 posts
Posted on 1/7/16 at 1:57 pm to
quote:

We have talked about trying to accurately time the market in here a lot


You can't time the market, but you can find low-risk entries.

Everyone, especially very intelligent people, want to find "reasons" why market cycles shift on a dime. Often, by the time the "reasons" become clear, the move is over and the big money has been made. Cycles change because of sentiment more than anything.
Posted by Sid in Lakeshore
Member since Oct 2008
41956 posts
Posted on 1/7/16 at 5:44 pm to
quote:

Cycles change because of sentiment more than anything.


When war breaks out in the ME between Iran and Saudi Arabia, jump in with both feet. Even if for a short trade. There will be an immediate spike based on irrational fear, until things get sorted out.

It may be a short term spike (if major production is not affected) or it may be a long term swing (if major production goes off-line for an extended period). Not sure the closing of the Suez has the effect it once did, as stockpiles are very large worldwide. Would be interesting to study that phenomenon......
Posted by cwill
Member since Jan 2005
54753 posts
Posted on 1/8/16 at 10:22 am to
“Oil experts, economists, and government officials who have attempted in recent years to predict the future demand and prices of oil have had only marginally better success than those who foretell the advent of earthquakes or the second coming of the Messiah.”

- US Foreign Service Officer James Akins, 1973

Still applicable.
Posted by TJG210
New Orleans
Member since Aug 2006
28367 posts
Posted on 1/8/16 at 2:22 pm to
Will the potential aramco iPo have any affect on the markets? I assume that will be the final nail for opec.
Posted by cwill
Member since Jan 2005
54753 posts
Posted on 1/8/16 at 10:23 pm to
No.
Posted by LSUmajek
Kemah
Member since Dec 2013
546 posts
Posted on 1/9/16 at 10:29 am to
This is an eye opening chart.

I've gone ahead and opened up a bi-weekly re-investment plan & DRIP with XOM. Hopefully in ~25 years this will be a solid investment
Posted by RidiculousHype
St. George, LA
Member since Sep 2007
10230 posts
Posted on 1/12/16 at 10:07 pm to
quote:

This is an eye opening chart.

I've gone ahead and opened up a bi-weekly re-investment plan & DRIP with XOM. Hopefully in ~25 years this will be a solid investment


Not so fast. The support line was broken today (see blue arrow below). If it closes the week below that support line, all bets are off. It is still a strong setup but watch it carefully the next few days.
This post was edited on 1/21/17 at 6:17 pm
Posted by RidiculousHype
St. George, LA
Member since Sep 2007
10230 posts
Posted on 1/21/17 at 6:14 pm to
Revisiting this thread from a year ago. Oil has doubled since the Feb lows.
Posted by C
Houston
Member since Dec 2007
27836 posts
Posted on 1/21/17 at 9:37 pm to
Very happy I've been wrong
Posted by GREENHEAD22
Member since Nov 2009
19642 posts
Posted on 1/22/17 at 1:07 am to
It will drop again.
Posted by C
Houston
Member since Dec 2007
27836 posts
Posted on 1/22/17 at 6:18 pm to
quote:

It will drop again.


sure...
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