Re:Ask HN: Crude oil price-linked ETF?
by ptero on Saturday March 14, 2020 @11:17AM
(#22575885)
Agreed, which is why I do not want futures contracts, or any options with a set time horizon. I consider the current price to be a fluke, I am willing to make a significant bet that the prices will recover, but I do not know whether it will take 3 months or 5 years; I am willing to wait it out.
I understand that this will effectively mean paying a "storage premium", but I am looking to minimize such costs by pooling money with a large fund that does this for a living and has tools and agreements that I do not have.
On a basket of oil majors as a proxy: sorry, this sounds suspicious. I think there are a lot of factors beyond oil prices in play which should make those pretty well decorrelated from short term oil price movements. Is this really true? Honest question.
I understand that this will effectively mean paying a "storage premium", but I am looking to minimize such costs by pooling money with a large fund that does this for a living and has tools and agreements that I do not have.
On a basket of oil majors as a proxy: sorry, this sounds suspicious. I think there are a lot of factors beyond oil prices in play which should make those pretty well decorrelated from short term oil price movements. Is this really true? Honest question.