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You don't "invest in USO" with the expectation of returns. You trade USO or derivatives with the expectation that its price will track movements in oil. Has USO
by juped 7y ago
You don't "invest in USO" with the expectation of returns. You trade USO or derivatives with the expectation that its price will track movements in oil. Has USO failed to track movements in oil? Will it?
- anonu 7y agoThat's right. USO is a derivative on a derivative on commodity that nobody wants right now. The amount of indirection to get from USO to crude would tell me yes, it's failed to reach its stated goal.
- juped 7y agoWhat? The price of oil has fallen sharply. USO has fallen sharply. This is what USO is supposed to do. The service USO is providing is giving traders a symbol they can use to be directionally exposed to oil without personally maintaining a tricky futures position.