Which type of investing do you prefer?

Question

So there are stocks, there's gold, oil (local, not investing in "big oil" corporations)... which do you prefer?

I am very interested in oil, is this a good idea?

Answer 1

Gold and oil futures are highly leveraged and take close monitoring.  They're not for part timers.

Answer 2

Remember only gamble with money you can afford to lose.

That is what you are planning,  gambling on oil futures.

Answer 3

I prefer to invest the way the Nobel prize winners in economics, the academic studies and my common sense tells me to invest.

I have a well-diversified portfolio of mostly low-cost index funds that suits my risk tolerance.

I am well aware that I don't know the future nor does anyone else. I am aware that over time people that try to outguess the market are losers.

I also know this:

"...the public working on its own did more than 100% better than financial ad visors when it came to selecting equity mutual funds."   - Donald Moine, Research Scientist

And this:

"Over longer time periods, indices continue to exceed a majority of active funds. Over the past three years (and five years), the S&P 500 has beaten 65.7% (72.2%) of large-cap funds, the S&P MidCap 400 has outperformed 68.6% (77.4%) of mid-cap funds, and the S&P SmallCap

600 has outpaced 80.2% (77.7%) of small-cap funds."

If you are diversified you'll own both gold and oil and everything else. And you'll be investing, not gambling.

“The Market Timers’ Hall of Fame is an empty room.”