Oil and Energy

Oil has a big impact on our econ­omy.

Shel­don Har­ber, Pres­i­dent of Asset Strate­gies, Inc. explains why you should con­sider the oil sec­tor for your finan­cial planning.

I’d like to talk today about energy – how it plays a role in your port­fo­lio and how you can par­tic­i­pate; how you can participate.

The pros and cons of oil and energy are really impor­tant because like any other type of invest­ment, you have to account for volatil­ity

With energy, volatil­ity can be high. When there are geopo­lit­i­cal prob­lems in the world, sup­ply can drop.

Oil and energy mar­kets are based on sup­ply and demand.

The the­ory is the more oil we find, the more prices drop but we never know for sure.

There are many things that affect the oil and energy sec­tor. 

There are com­pa­nies that sell the fin­ished prod­uct, like gaso­line. Oil is used to man­u­fac­ture many prod­ucts, like plas­tic. There are com­pa­nies that man­u­fac­ture the large tools and equip­ment that drill and mine oil, com­pa­nies that make equip­ment and trans­port oil through­out the country.

You can invest by pur­chas­ing indi­vid­ual stocks, spe­cial­ized mutual funds, exchange traded funds (also known as ETF’s) and you can even buy the oil itself as a com­mod­ity which is traded as oil and gas.

My point is that energy can play a role In your port­fo­lio but like any other type of equity invest­ment, you need to be care­ful to make an appro­pri­ate amount for your par­tic­u­lar need and goal.

The views expressed are by Shel­don Har­ber and should not be con­sid­ered legal or tax advice. Please see a qual­i­fied attor­ney or accoun­tant for answers to spe­cific questions.

Investors should care­fully con­sider the invest­ment objec­tives, risks, fees and expenses before invest­ing. For this and other impor­tant infor­ma­tion please obtain the invest­ment com­pany fund prospec­tus and dis­clo­sure doc­u­ments from your Rep/Advisor. Read this infor­ma­tion care­fully before invest­ing. Diver­si­fi­ca­tion and asset allo­ca­tion strate­gies do not assure profit or pro­tect against loss.

You’re best served by an expe­ri­enced finan­cial and tax pro­fes­sional. Asset Strate­gies, Inc. has been serv­ing clients for over 60 years. Visit us at our web­site, www.assetstrategiesinc.com, call us at 314–432-0288 or email me at Sheldon@assetstrategiesinc.com

We also pro­vide ser­vices in Chicago. Call Paul Wedeen at 630–556-4672 or email him at Paul@assetstrategiesinc.com.

Secu­ri­ties offered through a non-affiliated com­pany, Cam­bridge Invest­ment Research, Inc., a reg­is­tered Broker/Dealer, Mem­ber FINRA/SIPC. Invest­ment Advi­sory Ser­vices offered through Cam­bridge Invest­ment Research Advi­sors, Inc. a reg­is­tered Invest­ment Advisor

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About the Author: Sheldon Harber

Sheldon Harber is President of Asset Strategies Inc. and a CFP ® - Certified Financial Planner. His career started in 1979 with Comprehensive Planning Consultants (CPC). Today, his clients depend on him for experience and expertise to guide their financial affairs.