The World is Protesting High Oil Prices, thus DUG
Source: http://thestockmasters.com/DUG-061008.htmlPosted on Tuesday, June 10th, 2008 | In Current Market News, Energy Markets, Stocks to Watch
Contributed by: Ted Gottsegen (http://thestockmasters.com) -
The world is all pissed off about high oil and gas prices; protesting is happening in Scotland, Hong Kong, Nepal and Europe as I write. Spanish truck drivers are blockading their country’s border with France for crying out loud. There’s only one way to play it – UltraShort Oil & Gas ProShares (AMEX:DUG).
DUG is the answer, and it’s probably wise to build a small position before everyone else does. What the hell is DUG?
UltraShort Oil & Gas ProShares (AMEX:DUG) seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the Dow Jones U.S. Oil & Gas index.
The fund normally invests 80% of assets in financial instruments with economic characteristics that should be inverse to those of the index. Plain and simple, DUG is depressed (due to rising oil price) and ready to rebound.
The ProShares UltraShort Oil & Gas fund (DUG) provides a simple way to make money if the energy sector stumbles. Using an ETF to get short exposure to energy has several advantages, including no margin calls or contract expirations to worry about. You also don’t need exquisite timing on energy prices, as you can hold the ETF indefinitely.
DUG is the inverse of DIG, an ETF that tracks oil & gas companies. Oil is not going to be high forever. At current oil price of above $130, oil is overvalued. Ripe for shorting.
It’s not just Americans that are bent out of shape about oil & gas prices, just read a few articles, you’ll get the point:
In the U.S. – Workers protest rising gas prices
Last 5 posts by Ted Gottsegen
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Tags for this Post:
amex, Amp, Current Market News, Energy Markets, Europe, Hong Kong, Nepal, Oil And Gas, oil and gas prices, Oil Gas, Oil Prices, Proshares, Scotland, Stocks to Watch, Truck Drivers, World Oil
amex, Amp, Current Market News, Energy Markets, Europe, Hong Kong, Nepal, Oil And Gas, oil and gas prices, Oil Gas, Oil Prices, Proshares, Scotland, Stocks to Watch, Truck Drivers, World Oil
 About Ted Gottsegen (http://thestockmasters.com)
Ted's investments in the stock market and real estate have allowed him to pursue his true calling in life, Music. Ted is now a full time musician thanks to his investments and a part-time StockMaster providing his knowledge of making the right decisions and trend spotting in the stock market. Ted is also an accomplished writer and provides his editing skills to all of the StockMaster publications. |
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