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Originally Posted by V
So what would be considered the best way for a casual investor to go long on oil? Do you just buy USO, or do you buy the major companies like SU, CVE, etc.? I know nothing about futures, and don't think that's the best way for a noob like me to invest my money. Unless someone wants to give me a crash course on it.
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USO is a futures fund. It correlates to the price of crude based on the contracts its management creates.
Don't try to pick a bottom in any market unless you have insider information, or you really really know what to look for technically, or you just want to gamble. There is no indication oil will bounce at this level at all. Buying USO is literally a bet on black at this point.
Just a note, in 2009 the USO was bottom was around $30 and the SU bottom was around $20. Now, USO is at about $20 and SU around $30. I don't know if that means anything but I sure would not be looking for a bottom in any producing oil company right now.
There are much better investments right now. Pick a couple pharma companies.