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Should I Buy Oil Stock? Simple Tips on Oil Value Vs. Price

What You need to know if you are considering that now is the right time to buy oil.
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Prices Have Been Going Down Since July of 2014

I was at an investment conference in Chicago in July of 2014, and there was an ‘expert’ on stage strongly advising savers to consider having between 10-30% if their retirement savings in oil-related investments. 

This was an expert. He was highlighting that over the past several years there had been consistent double-digit returns and seemed to have good reasons to expect a continuation of the trend. From this opinion, the recommendation seemed valid.

Ironically, ever since that ‘expert on stage’ so strongly encouraged oil-related investments, the prices have gone down, down, and down over the last six years. Oil has gone down so much that recently if you had a place to store oil, sellers would actually pay you to take it. 

For reference, imagine the inventory of new vehicles manufactured becoming so high that the price of new automobiles kept going down. The prices would be so low that dealerships would be willing to pay people to come and pick up the keys to brand new cars and drive them off the lot because the dealerships had no place to store the brand new vehicles. Can you imagine that scenario?

Today, the fixed tax cost on the sale of gasoline is as high as $.80 in some states (California). This means that if gas is $1.60 per gallon in one-half of all the revenue generated is going straight to the government. The problem is that this can make it very difficult to be profitable to extract, refine, store, transport, and sell gas.

Thinking past the issue now, the advancement in alternative energy sources, which have been highly encouraged by soaring gas prices, the world of creating energy through wind, solar, and battery will forever change the historical dependence on oil.

Most importantly,  when one purchases their own wind, solar, and battery system, the government often does not tax the energy used.

Although gas prices are at an incredible low, the best way is to decide on how to invest in a stock that best fits your unique situation like through ACE a decision-making process for your best investments to help you make knowledgeable decisions. 

Obviously, no investment, tax or legal advice is given in this content.  Investment, tax, and legal advice is personal and private.  Investment advice offered through Versaille Capital Advisors, LLC, a Michigan Registered Investment Advisory Firm.

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