Anybody Invested In Oil Right Now?

[Seth]

With gas companies getting record profits every quarter, should I invest a bunch of money in Exxon Mobil and such? I don't know much about stocks, but I figure since they are doing so well there stocks should be shooting up also right?

Maybe then I won't feel as bad when I go to fill my tank up at the gas stations.

[JobyKSU]

Don't do it.

Stock prices are a reflection of what investors generally think is going to happen to the company in the future. Almost everyone believes that oil companies are going to continue to do really well. So, for you to make money, they'd would have to unexpectedly to even better than expected. It's possible, but if they simply continue to do as well as they are right now, you won't make much money.

If the average person wants to make money, it's much better to invest in a mutual fund or let an investment counselor guide you. You won't make as much money as if you get lucky and hit the "big winner" but there is a *much* lower chance of losing your money.

Also, mutual funds are kind of rewarding. With a little bit of research, you can find so called "socially responsible" mutual funds that only invest in companies that are doing the "right things." Examples include funds that only have companies that are environmentally conscious, or companies that don't deal with oppressive regimes. The Sierra Club sponsers a fund of high-value companies that it approves of.

Anyway - that's my view. Investing in individual companies (unless you have lots of other investments in your portfolio) can be pretty risky for the average. But that doesn't mean you shouldn't think about putting some cash out there

[Danoinark]

Spot on Joby!!!

[Trav]

I agree, the market on oil is gonna see the floor drop out from under them. Maybe not this year but next year for sure.

[hoglaw]

For what it's worth, Microsoft is trading at a near 52-week low. Murphy oil is trading at a near 52-week high.

If McCain has his way, federal taxes on end-user petroleum are going to be placed on moratorium right? That would seem to be pretty beneficial to big oil, but the market has probably taken that into account.