Where to invest money during peak oil

mmm · Tar Sands Joined: Jul 05, 2004 Posts: 37

I have $100,000 in retirement accounts (mainly growth and index funds), another $150,000 in money market accounts and $60,000 in equity in a condo.

I have no idea what to do with my money in light of peak oil. Inflation is one possible effect, so tucking it away in a savings account seems like a bad idea. But having it in the stock market seems much worse. And I don't want to pay off my mortgage, since I'm sure my whole building will go into foreclosure following peak oil -- I already pulled out as much cash as possible so that the hit would not be as big when the building goes into foreclosure.

Does someone have an idea where to invest money in this very uncertain future? Is there a basket of energy stocks that will do well, for example?

JayHMorrison · Posted: Mon Jul 05, 2004 8:51 am Post subject:

Coal companies are likely to do well. If coal goes from $35 to $50 per ton, coal companies could easily double or triple in value. There was something in USA Today a few weeks ago on this. The manager for an energy mutual fund was speaking about the oil crisis and where he is investing to take advantage of it.

He assumes that electricity will be relied upon for more tasks if oil becomes scarce.

If you are worried about inflation, there are the inflation protected treasury bonds. TIPS.

OilBurner · Heavy Crude Joined: Jun 03, 2004 Posts: 417 Location: UK

Any companies involved in defence work could also do very well - assuming greater global conflict due to resource competition.
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Burning the midnight oil, whilst I still can.

MadScientist · Heavy Crude Joined: May 19, 2004 Posts: 418

how about your local co-op? Or bankroll a small business that is part of your local food supply.

Your financial returns may not be great initially, but over the long term you will be rich in the most valuable future commodity- food.
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"The future power is manpower"

small_steps · Posted: Mon Jul 05, 2004 11:11 am Post subject:

Carrie · Posted: Mon Jul 05, 2004 11:33 am Post subject:

You may want to read "The Oil Factor" by Stephen Leeb. It's a pretty good book on the subject. He mentions that energy & gold stocks did very well during the energy crisis in the 70's. He does mention, though, that if the price of oil spikes up too sharply (80% or more in a 1-year period) it will be a bear market for oil stocks & everything else.

tonka · Coal Joined: May 11, 2004 Posts: 8

Agricultural land, and rent it out for now not a grate return on your money in stort term

JayHMorrison · Posted: Mon Jul 05, 2004 3:07 pm Post subject:

Pops · Posted: Mon Jul 05, 2004 3:19 pm Post subject:

Personally, I’m afraid to swim with the sharks when there will probably be blood in the water – so for me, it’s land, tools, skills and something to barter if things get bad or use myself if they don’t.
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Make a plan and work it:

Ardalla · Posted: Mon Jul 05, 2004 3:52 pm Post subject:

The obvious thing to say is get rid of the condo now while prices are high. But of course you've thought of that and are hanging on to it out of necessity.

Other than that I can only relate my recent experience with 'common sense'. During the last minirecession it occurred to me that, with expensive housing in decline, people would need cheap housing a la mobile homes. So I bought a bunch of stock in Oakwood Homes. Not long after that the whole mobile home industry colapsed because of overproduction capacity. This year I am taking a $2000 capital gains loss because OH went bankrupt. Research before you buy.

tonka · Coal Joined: May 11, 2004 Posts: 8

We as in my family are farmers, we own a small bit of land and are currently trying to buy the farm we have rented for generations. I was just thinking of planting a large corner of a field up with fruit trees too. Also a spot to build a house looking at forms of heating and electric. Most importantly I’m at this moment currently pluming a natural spring into the farm instead of mains water, had it tested and it’s fit for human consumption struggling with clean header tank at moment. [/quote]

Denny

Thugh reserves are dceclining, I think oil stocks would be a great investment. Secondly, ancillary services for exploration, like Schlumberger and Pason.

I understand that most "pure" oil concerns are priced now on the basis of US $25 per barrel. But, if you think we are at peak, its probably safe enough to think $35 just over the next two years.

The $10 per barrel difference is huge and it all goes to the bottom line.

I believe you will see oil companies "shut in" oil if the price drops to $30 a barrel, as the shareholders are very focused now on reserves, so a barrel of oil is better in the ground than sold for $30.

Also, many of the large ones are finacially able to shut in oil these days, as interest rates are fairly low and most of these have just minor debt loads to service as debts have been diminished with high revenues over the past 2 years.

LateGreatPlanetEarth · Posted: Tue Jul 13, 2004 6:22 pm Post subject:

Oil companies will sell less product, alot less. Agra land might do ok, but fertizers expensive. Agra land leased to wind power, much better.

JayHMorrison · Posted: Tue Jul 13, 2004 6:42 pm Post subject:

Short the airlines. I am currently short American Airlines (AMR), Delta (DAL) and US Airways (UAIR).

They are all going to $0.00. They companies will be in and out of BK for the rest of time. Their business models just dont work without cheap oil. Even with cheap oil, low cost airlines like Southwest and Jet Blue are kicking a$$.

I have invest about 1/4 of my money on the airlines going down.

pip · Posted: Wed Jul 14, 2004 9:25 am Post subject:

The following link has a collection of renewable energy stocks.

http://www.odysen.com/stocks/index.php