Historically oil prices trend upward with rising tensions among oil rich nations. Obviously with today’s escalation around the globe including Russia, Saudi Arabia, United States and Iran, the top four oil producing countries in the world, oil seems to have the potential to hit all time
Instead of going crazy fretting over high gasoline prices, why shouldn’t we invest enough in oil companies to hedge like the big boys do? If oil rises, we profit enough to fill our tanks. If
fall, we lose on our stock, but we benefit by cheaper gas at the pump. Why curse Big Oil’s “obscene profits” when you can participate?
Some choose to invest in the stock market to capitalize on these market gains. But if you’re looking for a monthly income stream with the added benefit of exceptional tax benefits, then investing directly with small drilling companies is clearly the better choice. Investing in oil will aid in offsetting the harmful effects of rising inflation and higher unemployment.