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Do any HN readers actually "invest" in oil? I think plenty of us trade oil, but who actually goes long in something that is so volatile in response to things yo
by module0000 10y ago
Do any HN readers actually "invest" in oil? I think plenty of us trade oil, but who actually goes long in something that is so volatile in response to things you have no control over(war, accidents, the list goes on)?
Oil's greatest investment potential is how volatile it actually is. Look at the charts for brent crude day-to-day, or jump back a step and look at the crude ETFs(sco/uco/and-friends). There is a lot of money to be made with that much volatility.
Back to the original question, does anyone here actually invest(as in hold long positions) in oil OR solar? If so, I am curious why you chose those particular investment vehicles, since they are technically(as in looking at the company's technical breakdown) bad long investments.
- machiaweliczny 10y agoCould you explain why you think solar is bad long investment?
- module0000 10y ago> Could you explain why you think solar is bad long investment? Other emerging energy sources all ding the price of solar stocks. Eg...if tomorrow a press release for "huge natural gas power plant opens in California!" breaks, you get a (sometimes large) dip in all your solar positions, despite no value being lost at all. I would sum it up as "solar equity prices are affected by too many things other than their performance".
- acchow 10y agoYou can go long and de-risk the volatility via derivatives.