One Way to Profit from Higher Energy Prices?

Article Submitted by: bankinvestor
Personal Finance


Individual investors can profit from an increase in energy prices.

 

Submitted: May 6, 2008    Views: 337    Comments: 1    Likes: 3   


Everybody knows that the Middle Eastern oil-producing countries and the large multi-national oil companies are the ones who profit from high oil prices, while the rest of us struggle with the concept of a $50+ fill-up. Many individual investors have taken that anger out on the oil companies by boycotting their stocks from their portfolios due to their participation with OPEC in maintaining artificially high oil prices. Investing in a Middle Eastern country is also something not a lot of investors consider practical. Luckily, there is a new investment that benefits directly from the energy industry without requiring the investor to join forces with the dark side. The EverBank World Energy Index CD is a single CD which combines the currencies of 4 non-Middle Eastern countries energy-producing countries. The World Energy Index CD is comprised of:

25% Australian Dollar

25% British Pound

25% Canadian Dollar

25% Norwegian Krone

The CD currently yields 3.03% for the 90-day CD or 3.15% APY for the 6-month CD. The currency fluctuation of the four underlying currencies versus the US dollar accounts for the other part of the return. FDIC insurance only applies to the viability of EverBank and does not protect investors from losing principal if the underlying currencies against the dollar. If on the other hand, the four currencies appreciate against the dollar then an investor can earn the return on the CD plus the change in value of he currencies. Minimum investment in the Everbank World Energy index CD is $20,000. More information and online applications are available at EverBank.

Energy demands are not something that is expected to decrease and as analysts expect more shocks to the oil supply , the EverBank World Energy Index CD may be a more diversified way to profit from energy prices than entering into the volatile commodities markets or the mutual funds which invest in socially-questionable energy companies.

 

 

 

 

 




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Comments Received:

Sam Cass
Sam_Cass

These look like excellent products.

Posted: May 9, 2008



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