An Energy EFT List Helps Make The Best Investment

by GuestPoster on December 13, 2010

The safest investments today are in the commodity market. Food commodities are a good investment because there will always be a demand. Other commodities, like resource commodities, can sometimes pay huge dividends and profits.

The most common question about resource commodities is which ones are best? Right now, energy commodities are the best. There are three different kinds, oil, natural gas, and electricity. Where to find energy commodities is the next most common question. This is not a problem once you locate a good energy ETF list. The next thing to do is predict which resource commodity will see the most growth. That is the tricky part.

The professional stockbroker will deploy a variety of methods to determine which ETF is going to be the best investment. They analyze the company’s structure, the management, the standard operating procedures, and the company’s credit. They will also look at how long the company has been in existence, as well as the prior achievements of the CEO. The list is quite long.

Once they are done analyzing the company, your stockbroker has a complete picture of the company strengths and weaknesses. They can then turn to the commodity itself. Here, there is a long list of items to be analyzed too. Each will give the stockbroker an indication as to which way the market is going. Much of the broker’s decision is based on hard data, but they also have to play their hunches. The best stockbrokers are intuitive and look for subtle trends.

As unusual as it may sound, religion can be one of the subtle trends. For instance, in the Middle East there is a lot of tension between Sunni and Shiite Muslims. Should that tension erupted into a war disrupting the flow oil there could be a dramatic rise in oil prices. This would also raise the value of oil ETF’s. Another subtle indicator is government leaders. Prior to the current regime in Venezuela, there was never a concern about the flow of oil from there. In other words, keeping up with politics is another subtle but important trend every good stockbroker will take into consideration when judging a commodity.

For the adventuress, you can invest in commodity ETF’s, yourself. Keep in mind to do homework and look for subtle trends just as the stockbroker does. Find an energy ETF list with companies you feel comfortable with and go for it.

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