At the intersection of money and investing lies a fundamental concept: “Buy when there’s blood in the streets”. What does it mean? More importantly, how does it apply to the booming oil industry we are witnessing? The idea refers to buying an asset when it is at its worst, as prices are low and potentially providing the capacity for growth as the market weaponizes.
The cryptocurrency surge of late 2017 and the ongoing bull market of 2020 are all the proof you need for the hidden potential in markets around the globe. Oil has been no exception, with prices varying inversely to financial markets since 2016. Though, 2020 is a year to watch, as innovative solutions and changing economics challenge the industry standards.
It’s not all negative though! Demand for oil is up and the market could potentially remain strong for the foreseeable future, and with that prosperous outlook comes the potential to buy when there’s blood in the streets. A loss of confidence brings lower prices and an opportunity for investors that are willing to bet on the come back.
We’ll be keeping a close eye on energy companies as the market evolves but for keen analysts, oil may just be the new gold. Investing in oil companies while prices are low carries potential unseen in many other markets, especially when you factor in the ever-present appreciation of natural resources.
The idea of buying when there’s blood in the streets transcended through centuries, making it a timeless and wise approach to investing. The energy industry that we are now witnessing, where fluctuating prices are just a normal part of the game, is the perfect time and place to bring that wisdom to life. Whether it’s something as conventional as commodities or something as innovative as cryptocurrency, the fundamentals of investing remain the same and it pays to remember that when you are seeking the next opportunity.