Bah, Hummer Bug?
Oil Wins– SUV’s Lose It’s the story of the stock market, isn’t it? There are winners and there are losers. The chart on the left below shows the price of XEG, a TSX traded closed end mutual fund representing Canadian Oil Stocks. You could have bought it for $30 in 2001, 2002 and briefly in 2003. Earlier this year it went over $80! This was a winner.
The losers were those who bought PICKUPS and SUV’s. The high price of fuel makes them expensive to drive…and harder to sell. And, of course, there are those who manufacture and sell the gas guzzlers… check out the chart of General Motors.
One of the most important tenants of investing is being in the right place at the right time. Even more important is NOT being in the wrong place at the wrong time.