hr: Money

It’s a well known fact that Money is only as useful as other people think it is. During times of inflation, people feel that it’s worth less, and 20 years from now, a single unit of currency will be worth far less than it is today.

Photo Credit: Eddie~S

However, that’s not the case with natural resources like oil and food. This makes them fairly reasonable long term bets when you want to stabilize your portfolio. If anything, over the very long term, oil prices simply have to keep going up, if for no other reason, than that oil is becoming more scarce, and the demand for oil is increasing.

But if it’s such a great idea, why isn’t everyone doing it? It seems that most people should be betting on oil already if it’s such a great idea. The reason is, that no one can predict what is going to happen to the prices, since they typically rise and fall in response to factors other than simple demand and supply.

It’s an interesting option to keep at least a small part of your savings into natural resources like oil, and companies that deal in agriculture. Of course you can’t depend on them, but the indications are, that they will be providing your portfolio with some much needed stability, albeit at somewhat lower return rates.

However, you can be sure, that over the long term, your oil stocks are just going to keep rising.