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Well the oil market -- denied care and if you're that might be an understatement -- that crude oil prices right now sitting above a 108 dollars a barrel up 17%.
So what do you -- -- get in on his boom but she don't -- -- play the futures market well we've got some great ways to invest in oil using ETFs but there are risks of course like every investment.
And Kevin mine is the chief investment officer at Kenyon and -- were pleased to have -- -- -- Sure some of your experts he sure are so welcome -- so when you are looking at the price of oil and trying to determine where it's going.
Trying to make your investment decisions do you look at the fundamentals and how they're being -- -- by geopolitics are you looking technical levels or some combination of both.
Why don't cost nor sixty dollars a told my guess take on the way in here so certainly oil -- -- -- investment worthy of strong consideration but you do look at the geopolitical.
Impact on the oil mark you do look what happened in the Middle East.
And you also look at emerging markets do we have to remember that oil is the lubricant of our global economic machine so it's going to be something that it's -- -- scarce it's always gonna have implied demand.
-- -- let's look at it each yes for so what do you have to keep in mind when you're looking at specifically the oil based each yes because there are all kinds.
With the evolution of the -- marketplace they've given the invention of individual investors a lot of opportunities to invest in the world.
But there are a lot of different ways to invest in well.
The first week you do that is through future based.
You TF such as USO or do you BO those are two particular ETFs that invest in four contracts on the oil market.
However by investing with those types of ETF she introduced situations like.
Backward nation they can take -- -- gonna stop you right there because those are technical terms.
Want to start with contained -- -- because that's right when the future price contract is more expensive or priced higher than the current contract and that's where you get into trouble with.
That's exactly right that's exactly right it's that impact the US so much more than -- -- because they approach it differently.
With US so they roll into next monthly contracts so that next monthly contract is priced higher than current spot per suspect has -- negative yield.
What do you BO from powershares does differently is that they roll into the -- contract.
That has the most positive our highest yielding impact or the lowest if you -- -- look at it differently can take away impact so that's why the performance of those for two particular -- are so different.
Simply put if you're looking at the spot price of oil that -- not necessarily determine -- What your investment gain or loss will be that's exactly right you have to be very very educated on the futures market you -- but there are other ways that you can invest in quarterly tips as well oil production company -- -- -- a little more straightforward it's a little more -- -- are investing in companies that operated an oil and gas exploration and development.
There's one called.
So those two products to each -- to -- to gain exposure to the energy market through oil related companies but not directly track the oil prices -- you have to understand the.
Upstream vs downstream production exploration those sides of -- businesses as well -- Absolutely but if you're investing -- me here for the most part you have a view on that after class or -- -- you want to invest in a product that tracks are given index up.
Hundreds of companies as opposed to trying to pick the needle in the historic yourself I this is interest you much exchange traded -- each yes.
I just learned about this -- this is very similar to like a bank issuing debt and you really have to look at the issue more because that's the risk -- that's a direct there's one out today.
Appropriately called oil or YL which is an exchange traded noticed my -- product from Barkley that allowed -- track and under lying asset.
So there's no real assets underlying that you can put your right where you do introduce fish were risk into the equation and they also generally have a higher expense ratios.
Three very different ways we just talked about to access the oil market through -- -- destruction.
Well very fair explaining nation explaining it get to do isn't disadvantaged the risks always involved and stay with different investments that we showing what he -- a particular time my pleasure at KK -- but he died thank you --
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