Using TRowePrice's Asset Builder, I'm set to invest 5K a year in this fund. Is this a good fund to hold for the long term? The entire world's demand for energy continues to increase. This combined with Morningstar's 4 Star Rating gives me confidence in investing in this fund for the long term. Any thoughts or opinions?
If you are in your 30's, 40's and early 50's, load up on this one. It will reward you handsomely over a 10-15 year period. I have bought allot for my 2 sons' ROTHs. It is volatile and not good to have allot if you are close to retirement as I found out...the hard way.
I started investing today as well (share price will be close to $29). Oil price is close to $55/barrel,($50 is critital support), prices of other commodities are bitten to the ground. At very low P/E ratio the risk factor of loosing a substantial amount of money is very low, even during long recession.
I have also held New Era since the 1980s (almost 10X) and I agree with tonaska. Read the prospectus. Note that New Era is basically a natural resources oriented fund with a primary objective of being inflation resistant. Of course oil and gas are natural resources, these stocks enjoyed a run-up over the last few years (and a moderate run-down lately), and so they get most of the emphasis. But in times past, gold and precious metals got a lot of emphasis. And once, when natural resource stocks were were unpopular, Wal-Mart was one of New Era's biggest holdings.
In my opinion, New Era is an excellent core holding for a Roth IRA... unless you are sure that you know something that none of us other investors know, in which case you should bet on that insight.
I have owned this fund in my IRA since the late 80s...it has done nothing for awhile..but I think in current environment, is a reasonable choice...it wont light your hair own fire but downside risk is low...upside is more likely..I think a good choice given you have a reasonable mix ...
best of luck...
I agree, I do think that oil will reach $150 per barrel this year but I also think that there is no real reason for the price to be quite that high.
The high demand for oil didn't just start last year. The demand for oil been there for years. With that said, I feel that once the speculators move on, the price will settle at approximately $100 per barrel.
My take on the fund is simple:
Since I'm already invested, just sit back and enjoy the ride. My theory has always been to invest on valleys not peaks. I'm currently investing in things that have taken a whipping lately like New Asia and Finacial Services. Next year when they turn around I'll hit cruise control there as well.