Key insights
- The post discusses the merits of holding energy ETFs like VDE for the long term, given the essential nature and limited supply of oil. However, the author notes the high volatility of energy stocks due to geopolitical events and policy announcements, questioning whether the long-term potential outweighs the short-term price swings. The post implies a slightly bearish outlook due to the volatility outweighing the long-term gains.
Basically the title. If you’re looking to purchase and hold assets over 30 years, and logic pretty much dictates that a commodity like oil or gasoline is going to be integral to society for the next 30 years AND it is a limited quantity, to me, it seems like a good sector tilt.
I currently have like 5% of my portfolio in VDE which has had consistent good returns over the 1/3/5/10 year range, handily beating VTI, but the price fluctuates every time the president makes a tweet or or a middle eastern OPEC country farts funny.
Take today for example, very bullish for the market, but VDE is down 4%. Curious what you guys think over the long term.