The gold price
Oil vs. Stocks: No Difference! - 15 October 2010
Buying oil to diversify your stock portfolio...? There's been little point so far in 2010...
QUESTION of the day, says Brian Hunt in Steve Sjuggerud's Daily Wealth...
Should you diversify out of stocks and buy a "hard asset" commodity like crude oil?
Answer: "Go ahead buddy...But there's actually no difference between stocks and oil."
Many investors buy commodities thinking they're "diversifying" their portfolios. But what they don't realize is that often, commodities and stocks move in the same direction, at the same pace. Today's chart shows this idea at work.
This "performance chart" shows crude oil and the benchmark S&P 500 stock index. It plots the performance of both assets over the past year. Crude oil is the black line. Stocks are the blue line. As you can see, oil and stocks are trading in lockstep with each other, according to expectations of global economic strength.
So...buy stocks...or buy oil? The market says, "What's the difference...?"
Get the safest gold at the lowest prices, only at BullionVault...
QUESTION of the day, says Brian Hunt in Steve Sjuggerud's Daily Wealth...
Should you diversify out of stocks and buy a "hard asset" commodity like crude oil?
Answer: "Go ahead buddy...But there's actually no difference between stocks and oil."
Many investors buy commodities thinking they're "diversifying" their portfolios. But what they don't realize is that often, commodities and stocks move in the same direction, at the same pace. Today's chart shows this idea at work.
This "performance chart" shows crude oil and the benchmark S&P 500 stock index. It plots the performance of both assets over the past year. Crude oil is the black line. Stocks are the blue line. As you can see, oil and stocks are trading in lockstep with each other, according to expectations of global economic strength.
So...buy stocks...or buy oil? The market says, "What's the difference...?"
Get the safest gold at the lowest prices, only at BullionVault...
Steve Sjuggerud, 15 Oct '10
Former stock-broker, mutual-fund vice-president and hedge-fund advisor Dr. Steve Sjuggerud is the founder and editor of True Wealth. Launched in 2001 and now one of America's best-followed newsletters for private investors, True Wealth also provides free analysis and ideas in the Daily Wealth email service.
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