In Israel, they are talking about attacking Iran in order to stop them from building a nuclear bomb. Remember the proverb, where there's smoke there's fire. Any type of war involving Iran and Israel or Iran and the United States is going to cause a big increase in oil prices. This is why it’s a good time to buy oil.
Some people may insist that that the market is “efficient” and therefore the risk of war in the Middle East is already factored into the price. But it’s my belief that markets are actually not that efficient when it comes to factoring in macro-trends like this.
The majority of my life savings are invested in individual oil and gas stocks, and the stocks I am most heavily invested in are: PXP, DNR, COP, CWEI, TOT. You could also buy the XOP exchange-traded fund if you want less risk. If you want more risk, you could play the futures markets, but I don’t do futures (although maybe I should).
This has been a public service announcement from Half Sigma