Now that gas or electricity has exploded in price, isn't it obvious to invest in companies that sell it or are closely related?
What stocks would you invest in?
- Thread starter MiltonStone
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Better to look beyond the current situation. Gas and with it electricity will come down again, as will oil come down again. OPEC knows this and it's one of the reasons why they are reluctant to increase capacity.
With regards to gas it is a transitionary process: Europe will move away from it, find alternative sources. China/India will be happy to buy cheap Russian gas/oil but there is nothing to invest ... . Moreover, Russia will be squeezed by these customers because they cannot sell gas/oil anywhere else.
Once Iran comes back as a producer the market will then collapse.
So, if you want to invest in equity better be sector-selective: Buy high dividend paying stocks of globally operating companies who produce goods everyone likes or needs. Maybe add a major mining company (usually high dividend payers) which will be good to have once demand for raw materials increases (China COVID hysteria will have to come to an end at one point).
An interesting opinion ->
Inflation 'collapse' will launch powerful market rally, Credit Suisse predicts
You are almost 1 year too late to the party: this is common knowledge by now and has already been discounted in the price.
Don't waste time trying to pick sectors, countries or themes- you'll just end up underperforming at a greater volatility.
Buy a global diversified index like VT and sleep well at night knowing that whatever country\theme\sector grows your funds will automatically flow to it just by sheer market capitalization weighting.
If you are thinking of utility companies, do not do it: They have to deliver at regulated prices and are under government supervison. Worst investment!
What remains are the usual suspects: Global oil companies!
If you want to invest into the overall sector, an alternaive might be a Global Energy ETF.
However, it is definitely not the time to invest in any of this right now. As @GeneralGogol said: You are one year too late.
where are they crashing ? they made a killing the last months and are now in a consolidation for the next move up
https://www.cnbc.com/2022/12/29/european-natural-gas-prices-return-to-pre-ukraine-war-levels.htmlHigh gas and oil prices are temporary. Sure, "temporary" can be longer than anticipated but this is definitely not an industry I would bet on for long term gains.
gas and oil will skyrocket in next 1-3 months.
Putin announced to stop all oil sales to countries with oil price gaps.
SPR going empty and winter is heavy in north america.
And still most oil companies in the US are making profit from $40 per barrel and we are currently at $80 and moving surely way over $100 soon
This will surely lead to expensive oil prices in western countries and keep cheap prices in rest of the world (BRICS) .
The sources for oil for western countries will decrease heavily after feb
Russian Vice President also announced oil being $150 per barrel in 2023 and being ready to reduce their production by 7% soon.
Last edited: Dec 30, 2022
Putin announced to stop all oil sales to countries with oil price gaps.
SPR going empty and winter is heavy in north america.
And still most oil companies in the US are making profit from $40 per barrel and we are currently at $80 and moving surely way over $100 soon
This will surely lead to expensive oil prices in western countries and keep cheap prices in rest of the world (BRICS) .
The sources for oil for western countries will decrease heavily after feb
Russian Vice President also announced oil being $150 per barrel in 2023 and being ready to reduce their production by 7% soon.
Last edited: Dec 30, 2022
Gas prices are back at pre Ukraine levels and Russia gas supply is of a more significant importance than oil supply.
Demand for oil has dropped and will do so in the coming period of recession. Perhaps if next winter will be very harsh and some new events occur it will go to levels you indicate, without those I don't expect price per barrel go over 100
Don't write nonsense if you have no clue of market.
Oil is/was dropping because
1.Russia still delivers to USA
2.USA releasing SPR to their market losing weekly millions of barrels of their reserves
3.Europe buying russian oil via india and pipeline (not nordstream)
4.Price cap
What do you think will happen when
1.No russian oil to USA anymore (you are aware US has a diesel shortage already today)
2.No more oil from SPR because the reserves are dwindling
3.No more russian oil to europe via india......
4.OPEC and Russia cutting production
From where will the west get their oil
Of course demand is moving back as price is high
Last edited: Dec 30, 2022
Oil is/was dropping because
1.Russia still delivers to USA
2.USA releasing SPR to their market losing weekly millions of barrels of their reserves
3.Europe buying russian oil via india and pipeline (not nordstream)
4.Price cap
What do you think will happen when
1.No russian oil to USA anymore (you are aware US has a diesel shortage already today)
2.No more oil from SPR because the reserves are dwindling
3.No more russian oil to europe via india......
4.OPEC and Russia cutting production
From where will the west get their oil
Of course demand is moving back as price is high
Last edited: Dec 30, 2022
They will never crash.. It's some of the most important sources we have in the world.
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Let's wait on feb and see how prices will move up .No chance Europe will not have a shortage of NG
Financial markets do not seem to have it on the screen yet. However, it seems the Chinese are again doing what they do best: Spreading a virus and infecting the world -> https://www.cnbc.com/2023/01/01/list-of-places-with-rules-on-visitors-from-china-as-covid-surges.htm
Exactly two years ago it started the same way!
Do you really want to invest in the stock market or in commodities like oil/gas under these circumstances?
Exactly two years ago it started the same way!
Do you really want to invest in the stock market or in commodities like oil/gas under these circumstances?
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