I currently have 10K that I would like to put into the stock market. I know energy is hot right now. Does an

Question

I currently have 10K that I would like to put into the stock market. I know energy is hot right now. Does an

Answer 1

I would diversify into the following 5 areas for long term growth:

1. Health Care (concentrate on Biotech and Diagnostics)

2. Consumer Staples (especially ones that have an emphasis on export)

3. Railroads (hedge on high oil prices without taking a chance on oil itself)

4. Agricultural Technology.  Although it has had a big run, there is a huge demand for fertilizer and "high-tech seeds" that increase yield of farmland.

5. Solar/Wind/Alternative Energy (except Ethanol).  Solar and Wind will get much more investment because of the prices of oil and natural gas.

Answer 2

Does an????.

Energy stocks will probably peak when oil hits $150 per bbl.

They will probably decline a lot after the oil supply catches up with demand.

Answer 3

Does an ETF make sense?...why yes, it does...but don't go whole hog in energy...get a little USO ( oil) a little OIH ( the drillers,transporters ) a little UNG ( nat/gas)...but save some for metals/mining ( XME)...and maybe some ag chems ( MOO )

....or were you going to ask about "funds"  EUROX holds a lot of Russian " energy"...ICENX has the big oil companies and the service companies, too... or go with Fidelity " sector " funds  FSESX...or FSNGX..or FNARX.

... then get yourself a nice pair of deck shoes and a little Captain's hat.... they'll be delivering that yacht any day now... okay, okay..it might take a few years.