Is it time to invest in oil?

<>If there is a financial asset at the moment that maintains an upward trend, it is none other than oil. One of the most important listed on the financial markets. Above other raw materials of special importance in the international economy. Not surprisingly, it can be a very propitious moment for you to surrender with this alternative that you have to invest. Because in effect, there is a lot of money that you can earn from now on if you formalize the operations correctly and at the right time. Both in the purchase and sale movements.

El oro negro es uno de los activos financieros que ofrece mejores perspectivas para la toma de decisiones durante este nuevo año. Inclusive por encima de las perspectivas de la Bolsa en 2018. Hasta el punto de que ya son muchos los pequeños y medianos inversores que se están acercando a instrumentos financieros vinculados a esta importante materia prima en todo el mundo. Quizá be uno de los más grandes business possibilities you have throughout this exercise. Presenting an upward trend in the medium and long term beyond any doubt.

But if crude is characterized as an investment in something, it is because its prices can change at any time and without prior notice. Any news related to its production can substantially alter its value in the financial markets. As has happened in recent years. With very abrupt movements that can tip your prices one way or another. Not surprisingly, its high volatility is one of the common denominators of this extremely important financial asset. Because it can also influence the pace that the economy can take from now on.

Oil at $ 65

At the moment there is one thing very certain and that is that black gold is priced around the $ 65 barrel. A price level that has not been seen since mid-2015. This in itself means that something is happening in this raw material. And decidedly from a positive point of view. Because it seems that everything indicates that oil price you can go to higher levels. Specifically, close to $ 80 a barrel and even more if the conditions are met to continue with this price escalation. In a few weeks it will be possible to know if this is the case or if, on the contrary, important corrections can occur in the short term.

Regardless, it can be a great entry level to take positions from now on. Even though it will always be very prudent to wait for these buying signals to be confirmed. Not only in the acquisitions and sales of shares in the stock market. But through other financial instruments of special importance. As an example, Investment funds those listed. Instead, they will help you to correctly diversify your investments from these precise moments.

35% Revaluation

Either way, the price of oil has appreciated in the last year around 16%. Especially because of the momentum that has developed during the last half of the year. Where it has accumulated a good part of the increases in the financial markets. With an average profitability higher than 35%. Therefore, it is one of the most profitable investments that are developed from any financial asset. Something that you can take into account from now on if you want to turn around all your investments. Above other technical considerations and perhaps even fundamental if this is your wish in summary.

On the other hand, and in terms of its profitability, you should know from the beginning that this important financial asset is one of the most profitable in clearly bullish scenarios. The return you can achieve is above other financial assets of particular importance. As an example, buying and trading stocks on the stock market or more recently with gold. Regardless, it faces volatility higher than all of them. Where so soon their shares are up 5% Similar percentages remain the next day. To the point that you must be very aware of your quote. If not, you can pay dearly.

How to invest in crude oil?

Once at this point, what happens is how positions can be taken through this raw material. It will not be as easy as in other investment proposals. If not, on the contrary, it will require more doses of creativity since their positions are open to a series of financial instruments that you did not have from the beginning. You can even formalize these operations fixed income. Because in effect, there are term deposits that are linked to this financial asset and without you having to risk your financial contributions. You will always have a fixed and guaranteed return every year.

This type of Bank deposits Te posibilitan cobrar un interés fijo, pase lo que pase con el precio del oro negro. Aún cuando por debajo de unos márgenes no muy satisfactorios para sus intereses personales. Entre otros motivos debido a que no superará niveles del 0,75%. Para mejorarlos, no tendrá otra solución que el precio del petróleo scope un nivel mínimo. Para que de esta dinámica estés en condiciones de alcanzar un interés cercano al 5%. Aún cuando desde el punto de vista negativo existe el hecho de que no podrá captar por completo la subida del precio del crudo. Es una strategy de inversión que apunta a un perfil más conservador de lo usual.

Purchase of shares in oil companies

La forma más sencilla de posicionarse en esta materia prima de especial relevance es a través de los mercados de renta variable. Y muy particularmente en la Bolsa de Valores a través de las petroleras. En España la oferta es muy limitada y única Repsol achieves these characteristics. To this end, it cannot be forgotten that the national oil company is being one of the main beneficiaries of this upward oil cycle. With one of the highest revaluations of the selective index of Spanish equities, the Ibex 35. At the same time, it has a very interesting dividend distribution for small and medium investors.

But if you want to expand the offer to invest in this raw material, you should go to other international markets. Where the supply is much denser, as in the case of the stock market in Europe and the United States. You will have many proposals to satisfy your demand to make profitable the savings of this special dynamic. With a level of revaluation this year from 15% to 30%. Conforming as one of the most active and profitable sectors of the international financial markets. You can take advantage of the excellent oil situation to open positions from these precise moments.

Exchange Traded Funds: Crude Based

Another option you have at this time is through ETFs, or exchange-traded funds. It is a financial instrument that combines mutual funds and stock trading in a bag. Despite everything, it has the big problem that it does not capture all the intensity of the climbs. Mainly because it has as a reference point, not the real oil prices, but an estimate of them. This is one of the reasons why, even though this financial asset may rise, the price is not included in this financial instrument. Where there is a very relevant gap.

On the other hand, ETFs allow you to opt for various strategies in this type of investment. From more global approaches where investments are made in oil companies located in different geographic areas or more oriented in just one. As an example, in the russian market You are so tied to this important basic financial asset. The options open to you from these savings models are vast. Even though it will always be convenient for you to provide a greater financial culture than in other less demanding investments. It will be a very useful measure to operate in these types of markets based on this raw material.

Investment funds are also open to oil operations. From simpler approaches of use. Even though in this case they will be combined with other financial assets. Coming from both equities and fixed income or even alternative models to diversify the investment more effectively. However, there are several investment funds that provide these special features.

Where you will only need the decision to opt for the format that best suits your real investment needs. From the strategies developed by the managers themselves. In other words, you should not do anything since it is a fully active investment model in most cases. That will depend on the profile you present as a small and medium investor. As simple as that.