Comments on: Record Oil and Gas Prices Got You Down? Use This Opportunity Make Money

By: dennis

dennis — Thu, 11 Mar 2010 17:04:33 +0000

If you have this in a 401k or IRA plan then the tax implications are minimal, in reference to the concern that aa raised. I agree that if you invested in a non-tax deferred account you should fully understand the tax implications

By: Personal Edge Insights - Barbara Ling » Archive » Make money with high gas prices - 109+ Resources and Ideas

Wed, 25 Jun 2008 11:38:29 +0000

[...] Record Oil and Gas Prices Got You Down? Use This Opportunity Make Money [...]

By: Jeremy

Jeremy — Wed, 07 May 2008 14:18:10 +0000

While it is true that an oil fund that tracks an actual commodity, such as USO (which I didn’t mention) and DBO, are treated as limited partnerships, so the taxation is handled differently.

But, the other two ETFs listed are your typical ETFs that invest in the oil sector, and buys the companies within that sector just like any other ETF.

If you wouldn’t be comfortable trading commodity futures outright, then you shouldn’t be buying a commodity ETF. Nor should you invest in something without understanding how it works. That is why registered funds have a prospectus, and if you don’t want to read it before making an investment, that’s your own fault.

By: aa

aa — Wed, 07 May 2008 13:48:00 +0000

You all fools forget how these oil ETFs are different from ordinary ETFs. These oil ETFs are backed by futures and they’re structed as partnerships.

Therefore, they’re marked to market in the year end, and they’re taxed at 60% long-term/40% short-term capital gain/loss. Also, they send out K-1 forms that are complex to understand. You may also pay more tax (e.g. pay $3,000 tax on $300 gain).

Know what? All the holders from last year regreted their purchases when they filed the tax in April.

By: Moneymonk

Moneymonk — Tue, 06 May 2008 23:26:42 +0000

don’t forget USO and OIL

By: Chrysler’s Cheap Gas: Trick or Treat?

Chrysler’s Cheap Gas: Trick or Treat? — Tue, 06 May 2008 18:56:32 +0000

[...] months ago, Generation X Finance told you how to make money with high gas prices. If you read the article and bought Powershares DB Oil Fund (DBO), you’ll notice that your [...]

By: JPMorgan Chase Buys Bear Stearns for $2 per Share and the Fed Cuts the Discount Rate : Generation X Finance

Mon, 17 Mar 2008 14:22:46 +0000

[...] In an attempt to ease this situation, the Fed cut the discount institutional lending rate from 3.5% to 3.25%. This may be appropriate action, but the markets have not responded positively to the news. This small drop in rates has little effect when the U.S. dollar continues to fall and oil prices continue to set new records. [...]

By: Fight Back Against Rising Costs of Living

Fight Back Against Rising Costs of Living — Thu, 31 Jan 2008 13:08:07 +0000

[...] I can look at all these things and cry, or I can do something about it. What can I do? I can invest in the companies that make money off of me. When gas prices go up oil companies make more money and their stock goes up. By buying stock in those oil companies, I hedge my oil prices. Jeremy from Generation X Finance wrote a great article about hedging oil. [...]

By: Tom

Tom — Wed, 16 Jan 2008 03:19:33 +0000

Oil prices have always been weird. Just look at the past few weeks and look at where gas prices have went. Here on the east coast it has gone from $3.20 one week to 2.79 the next.

By: Never the Same River Twice

Never the Same River Twice — Wed, 09 Jan 2008 17:25:12 +0000

As a contrarian play you could look at alternative energy ETFs. Powershare’s Wilderhill Clean Energy Portfolio (PBW) is just one of many options.

If the environmentalist in you doesn’t want to sink money into Big Oil, why not fund the future?