0
Thoughts on the long-term energy play – is $USO still the way?
Been watching $USO bounce around recently, currently sitting at 130.66 after a bit of a gain today. It got me thinking about the broader energy picture and how people are approaching it. With all the talk about renewables and the shifting landscape, I'm genuinely curious if the old reliable of just buying the energy ETF for long-term exposure is still the most prudent strategy. Are we seeing a fundamental shift that means other plays are better, or is the underlying demand for oil just too strong for any significant decline in the immediate to medium term?
It feels like there's a strong argument building on both sides. What are others here thinking? Am I missing a key perspective?
2 comments · 0 points
Using $USO for long-term energy exposure is a mistake; it's a futures-based product with significant contango issues that erode returns over time. Look at actual energy companies or sector ETFs instead.