Well, it seems that only necessities are doing well in today's market, so I want to put some money into oil. If you can't beat them, make money off of them, right?

So what are the best funds that invest in oil or other necessities?

i would like to know this too

j

I'll see if I can help. Firstly, I don't work for a firm, just invest myself.

The one I deal with for oil is the HBP (Horizons Beta Pro) Nymex Crude Oil Bear & Bull + ETF.

It's 100% oil, the fund is based on the value of the Nymex Crude Future, you can find it here http://www.bloomberg.com/markets/commodities/energyprices.html

The Oil Bear fund, your betting that crude will fall. It endeavors to correspond to two times (200%) the inverse (opposite) of the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month.

The Oil Bull fund, your betting that crude will rise. It endeavors to correspond to two times (200%) the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month.

ETF's are a straight up 1.15% fee, once when you buy and once when you sell.

No MER's etc. You can hold them long or short.

If the Nymex Crude Future (Oil) moves up +5%, and you have the Bull ETF, you make 200% (roughly) so, +10%. The opposite would happen if you had the Bear ETF.

If you've never done this before, I would suggest keeping track of Crude prices and fluctuations for a while with the link at the top. I'm saying this because you need to familiarize yourself with how much it moves, like what's the average, what's normal, and what's not normal, then you'll have a better feeling as to when to sell and when to buy. You can also get a feel for how much oil moves on certain news and world events, also required knowledge.

Take the time and do this, and I think you'll be good to go.

Crude trades all the time (almost) so you can check at 11pm or when you go to bed, and check again in the morning, gives you a little heads up for what's coming or not coming the next trading day. If the shit hits the fan, you can sell on the bell in the morning and run.

Just be cautious, this oil ETF moves big and fast. You need to keep track of them daily and be ready to move quick. I track oil every hour or so.

And the end to all this is a small example, one which I may be profit taking on Monday.

$7,500 Oil Bull position - 08 Dec 2008

Value as of 02 Jan 2009 - $33,000, or 380%.

Just be careful, if you're on the wrong end of the stick...........well, that's why I suggested tracking oil for a while, get your feet wet and then dip in for a trade.

Don't go big, you don't need to, the returns are such that if you're timing is reasonable, a small bet will reap huge returns. Minimize your risk, use 10% of your portfolio to generate your returns. The other 90%, you keep in GIC's, cash, gold, whatever is safe.

Good luck to all, hope you make tons.

I'll see if I can help. Firstly, I don't work for a firm, just invest myself.

The one I deal with for oil is the HBP (Horizons Beta Pro) Nymex Crude Oil Bear & Bull + ETF.

It's 100% oil, the fund is based on the value of the Nymex Crude Future, you can find it here http://www.bloomberg.com/markets/commodities/energyprices.html

The Oil Bear fund, your betting that crude will fall. It endeavors to correspond to two times (200%) the inverse (opposite) of the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month.

The Oil Bull fund, your betting that crude will rise. It endeavors to correspond to two times (200%) the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month.

ETF's are a straight up 1.15% fee, once when you buy and once when you sell.

No MER's etc. You can hold them long or short.

If the Nymex Crude Future (Oil) moves up +5%, and you have the Bull ETF, you make 200% (roughly) so, +10%. The opposite would happen if you had the Bear ETF.

If you've never done this before, I would suggest keeping track of Crude prices and fluctuations for a while with the link at the top. I'm saying this because you need to familiarize yourself with how much it moves, like what's the average, what's normal, and what's not normal, then you'll have a better feeling as to when to sell and when to buy. You can also get a feel for how much oil moves on certain news and world events, also required knowledge.

Take the time and do this, and I think you'll be good to go.

Crude trades all the time (almost) so you can check at 11pm or when you go to bed, and check again in the morning, gives you a little heads up for what's coming or not coming the next trading day. If the shit hits the fan, you can sell on the bell in the morning and run.

Just be cautious, this oil ETF moves big and fast. You need to keep track of them daily and be ready to move quick. I track oil every hour or so.

And the end to all this is a small example, one which I may be profit taking on Monday.

$7,500 Oil Bull position - 08 Dec 2008

Value as of 02 Jan 2009 - $33,000, or 380%.

Just be careful, if you're on the wrong end of the stick...........well, that's why I suggested tracking oil for a while, get your feet wet and then dip in for a trade.

Don't go big, you don't need to, the returns are such that if you're timing is reasonable, a small bet will reap huge returns. Minimize your risk, use 10% of your portfolio to generate your returns. The other 90%, you keep in GIC's, cash, gold, whatever is safe.

Good luck to all, hope you make tons.

Excellent response, loco! :thumbup

Apologies, pay no attention to the 380%, the ETF was split over the weekend, and I did not notice. If an ETF gets to small in value, they do a split to get the price back up.

Just a side note to the "proceed with caution".

I have seen the Emerging Markets ETF move by 51% in a day, so that would be 102% loss or gain......in one day.

Not trying to scare anyone, only seen that once in a year, and only on one fund, but if one can move 51%, then they could all move 51%, given the right circumstances.

The other problem with investing in oil is that there are often huge swings the day before the contract expires. And the big players own enough of the market to squeeze out other guys. For instance, the reason oil hit $147 last year was due to a short squeeze a large european energy giant was putting on US banks. There was massive short interest by US banks, to the tune of 10:1, so this big energy giant who owns 10%+ of the oil contracts started buying everything in site to keep the price above $135. It paid off, and those banks had to buy at whatever price they could get in order to avoid taking delivery of a shitload of oil. This buying frenzy drove the price to that record.

If the world's economy crumbles as many are predicting - I would think that energy would be a bad place to hide your money...

If the world's economy crumbles as many are predicting - I would think that energy would be a bad place to hide your money...

Good point, all I can say is :dunno