Is it to late to make a profit on the energy sector i was contemplating on investing in VGENX?

Question

Is it to late to make a profit on the energy sector i was contemplating on investing in VGENX?

Answer 1

It's really not too late...oil prices may fall, but an " energy fund" is not ONLY invested in the price of " big oil".  Looking at the holdings of VGENX, they are pretty widely invested... some drillers, some equipment, some foreign ( Russia, France, Brazil)...some nat gas....

So you will be relying on the managers of the fund to re-allocate holdings as markets change... and they will... returns probably will not stay in the 30% range, but they will still be good. Look at returns for two or three years ago...when oil was $70. a barrel... other areas made the big gains... irregardless of one aspect of the fund, one thing remains: this growing, modernizing  world demands more and more energy... sure some will go to wind or solar, but basically and for some time, the demand will be met by oil, nat/gas, coal and the companies that service, supply, repair and transport them.

...and after investing, you could easily take some profit and buy into ETFs in the solar or alternative energy fields ( PBW, GEX, TAN )... sort of a little " hedge" or " insurance".

Answer 2

It seems so.  The overall price gain in oil is greater than that of the market during the bubble, over 600%.  A lot of people bought at the very top in 2000, a lot of people will buy at the top of the upcoming oil bubble.  The idea of buying an extremely high investment to try to sell to someone else at a higher price is a foolish one, hence the term for this type of thinking, the "Greater Fool Theory."