How To Avoid Getting Burned With Oil Stocks

A counter-intuitive investment principle is this: running to a sector of the economy after it blows up often proves, in hindsight, to be one of the safest things you can do.

Take a look at something like the Nasdaq Fund, QQQ, which tracked the technology stocks affected by the dotcom bubble. Between the fund’s inception on March 10, 1999, and July 23, 2002, the fund lost almost 60% of its value. A portfolio with $100,000 in a basket of tech stocks in 1999 would have become $43,400 by the summer of 2002. And yet, history favored those that purchased technology stocks after the collapse.

Continue Reading!