Why don't the middle class invest in big oil?
I'm serious Exxon Mobil (xom) and Chevron (cvx) stock are currently both in the low 70s per share. Not exactly a bid deal of money. I personally have been buying both for 7-10 shares a month since 2003 when they where both in the mid 30s and the dividends pay for a huge portion of my gas costs each year currently about 70% not to mention I have double my investment already in under 36 months (lets see a worthless Cd or money market do that). Unless you have a child fetish or a consumerist whore there should be no reason for you not to tak advantage of this opportunity and use your dividends to pay for almost all your gas( depending on how many share you have of course).
- 1 decade agoFavorite Answer
many people mistakenly associate the stock market with unnecessary risk. the value of stocks are subject to fluctuation, and the uncertainty makes the investment seem like a bad idea.
exxon and chevron are both very stable and profitable companies, and will continue to be regardless of who invests. for some, oil stock may be in bad taste (who doesn't love to hate big oil companies?). however, no one is going to stop buying gasoline. many people depend on gasoline for transportation to popular destinations like their workplace.
the uncertain political climate in the middle east has led to speculation that oil will be more scarce in the future, which leads to higher prices on the futures market. this speculation leads to higher oil prices now, which increases the profits of oil companies, as the price to extract and refine oil has not changed.
- iampatsajakLv 71 decade ago
Because I would like to sleep at night. I'm not buying into that evil.