Opinions
John Stephenson
HBP NYMEX Oil Bull+ ETF
HOU-T
DON'T BUY
Aug 21, 2009
NYMEX Oil Bull+ ETF. Had owned this but sold it in frustration because it re-balanced daily. If you went from $50 oil to $75 oil, that would be terrific if you got direct exposure, but what happens is that your price goes up and down on the way.
$9.570
Stock price when the opinion was issued
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It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
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DON'T BUY
Levered at 2x, hedged to the CAD, holds futures contracts but not shares of oil producers.
If you want to speculate on oil, is this a good vehicle? Very, very risky.
One good thing about being in the stock market is that if you don't get it right, right away, over the long term you tend to get bailed out. Products like this have serious tracking errors. You have to be very careful. Only for very short term. He wouldn't use it. The oil price is manipulated.
Lots of oil stocks are pretty cheap, pay nice dividends, have good shareholder returns. That's what he'd do. It's more boring, but less risky.
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