What I’m Buying: Oil

A couple of weeks ago I posted here on Trading Common Sense that I had sold my largest position: Apple. Despite the fact that I still have more cash in my account than anything else, I have a new largest investment position. Some call it “black gold,” some call it “Texas tea,” but I call it “United States Oil Fund, LP.”

Here was my dilemma once I had sold Apple: what the heck is out there to buy? A good friend of mine had asked me what stock he should buy about a month ago. I told him, “I’ll get back to you.” And then I realized a month had gone by without be coming across a single “can’t miss” idea.

I don’t want to give anyone the wrong impression. There are a lot of stocks out there that are probably good investments at current prices.  But I know that if I’m patient, I can do a lot better than “probably good investments.” I prefer “absurdly cheap,” like how Apple was at $70 back in 2013 or how Bank of America seemed at $5 per share back in 2009.

Stocks? Meh. CAPE is still above 25, and the market’s at an all-time high. But I have been noticing how much cheaper prices at the pump have been lately, and the cynic in me knows that likely won’t last.

Long story short, my Apple money went into the US Oil ETF, ticker USO. There’s not much else out there right now that looks appealing.

Read the article I published today on Benzinga about the global pressure to keep oil prices high in the long-term by clicking here

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