Quote:
Originally Posted by sail33or
The Stock Market has changed. Large investments are index fund types that buy all stocks. So when a computer gets a sell indication (ALL STOCKS ARE BEING SOLD.) Everything goes down. Everything. And it is sold before you can sell.
Exxon will always pay a dividend(now 6%) (and first $72,000 of dividends are tax free) as long as oil is over $40.00 a Barrel. Can you ever see oil below this as the government squeezes the very substance everything is made from.
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I find it incredible and sad that the depletion allowance for oil still exists. If it goes away what happens to the oil companies? Nothing good.
A few fairly random thoughts
Everything made from oil is becoming more fuel efficient. My 2011 Camry got about 32mpg. My new one close to 40.
Until the range of electric cars gets to over 400 miles think the demand will be limited.
As a result not sure people will be willing to pay the price and suffer the inconvenience of electric cars. Not to mention where will the rare earth metals needed for them come from?
Can see a scenario where price of oil does drop just no idea how far.
May not do as well as some "funds discussed here" but my basket of mutual funds has done quite well for us over the years.
The funds favored by Kiplingers are a good starting point for investing.