No Fortune with energy shares

It is not yet a year ago that the anger over rising fuel and gas prices, the front pages of tabloid newspapers filled. Those who can not remember: In the summer of 2008 cost of a barrel of oil from the North Sea, around 150 $. Within six months the price had doubled, and not because of a war or a disaster, but simply because the demand for the production by far exceeded and speculators attracted as never before. The rapid price increases sparked a previously in the euro-zone unprecedented inflation.

What then is known: the still somewhat mysterious appearing rapid ascent followed by a more violent collapse. Within the next six months lost three-quarters of its oil price. Since then commutes the price per barrel at about 35 to 45 $. Oil was so cheap as five years ago.

The main reason for the collapse of the oil market is next to the bursting of a speculative bubble now also cooled the economy, the demand for raw materials has eroded.

The spectacular mountain and valley ride is also in the portfolio of funds investing in companies with a focus on energy investing, left deep scars – and ultimately destroyed a lot of money: According to historically high volatility, the Fund ended the year 2008, after conversion into Euros with at least 35 percent loss. In the three-year review is an annual minus five to ten percent in the books.

In the equity portfolio of energy are both titles of oil dividend as well as energy suppliers. Both industries are limitless some remarkable similarities between different markets: A few billion-dollar corporations combine great wealth and capital strength. Moreover, the price is heavily exposed to political influences. To control the OPEC cartel funding together most of the Middle East oil and the price of Venezuela on their territories supported firmly down on raw material supply quantities. Moreover, many oil companies outside OPEC, and the number of utilities under state outside supervision. And finally, governments around the world through direct subsidies and laws relevant to business in the energy sector.

Investors who are in energy fund to invest should consider all this. First, they buy into a sector that is the fuel for the world economy produced or distributed. That speaks well for the medium-term earning potential, because the growing energy demand on a naturally limited supply meets. And as expected because the fund manager even after the sharp slump in oil prices in unison with a new price rise in the coming months.

Second, investors who engage in this sector in a market, before the political conventions is not immune – but on the contrary, high risks, such as wars, nationalisations Ölreservepolitik or the individual states.

And thirdly, subject to energy equity funds do not last always an implicit currency risk, because energy resources are often in the markets traded in U.S. dollars.