Oil prices – time to fill up?
There’s no doubt oil prices have dropped a long way in recent months. Of course, that begs the question of whether oil prices are near their bottom and worth buying from a medium or long-term investment perspective. Although picking exact market bottoms is fraught with difficulty, from an historical perspective it would be unusual if oil prices fell a lot further from current levels and then held at these lower prices for an extended period. As a result, from a risk-return perspective, averaging into oil exposure by buying into further market weakness could potentially offer long-term rewards. What’s more, it’s never been easier for Australian investors to gain exposure to oil prices through exchange-traded investment products. To read about how Australian investors could benefit from this opportunity, read here: (VIEW LINK)
Author, columnist, investment strategist and macro-economist. Previous roles at Federal Treasury, OECD, Macquarie Bank and AFR. I develop economic insights and portfolio construction strategies for BetaShares' retail and adviser clients.