Tags: iran | nuclear | crisis | lignet

LIGNET: Iran Nuclear Crisis Could Impact US Market

Wednesday, 11 Jul 2012 02:37 PM

By Newsmax Wires

With 40 percent of the world’s oil transported through the Strait of Hormuz, a crisis involving Iran could easily send the price of crude soaring as fears of supply disruptions dramatically increase short-term demand. A handful of high dividend-paying oil stocks with strong fundamentals, including Chevron (CVX) and Statoil (STO), are positioned to rise quickly in the event of bad news from the Persian Gulf.

LIGNET’s advice to oil sector investors is simple: protect against downside risks while simultaneously positioning capital to reap a large upside reward if economic and political conditions suddenly change and push stock prices upward. The companies we’re highlighting are inexpensive relative to their earnings and stand to profit in the event of a crisis with Iran, which many experts now believe is inevitable.

Editor’s Note: General Hayden Leads URGENT Summit on Nuclear Iran – Watch Here

Because oil is a necessity of modern life that propels our cars down the highway and lifts our planes into the air, it is in one sense a safe investment. Consumer demand for it is not likely to disappear anytime soon. And even in bad economic times, when prices tend to fall, there is much less risk of a gigiran.pngantic oil company going bankrupt than there is of the same happening to a small Silicon Valley start-up. The tradeoff for investors is that oil companies do not usually grow quickly. The relative safety of oil sector stocks and their stability compared to stocks of more volatile industries makes them attractive to investors as "dividend plays" that generate a predictable return on investment with little downside risk.

Editor’s Note: Don’t Miss LIGNET’s Urgent Summit on Nuclear Iran – Sign Up Here

Investing in oil sector stocks as a "growth play" is not usually a sound strategy, but current geopolitical conditions in the Persian Gulf have created a new investing environment. The six oil industry stocks singled out by LIGNET were determined to be attractive investments based on metrics that measure their value. But more importantly, they were selected because they are poised to spike upward in price if a conflict with Iran erupts.

Click here to subscribe to LIGNET and read the full analysis, which includes detailed information on the six oil company stocks investors should consider buying now.


© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Unemployment  Benefit Applications Drop to 15-Year Low

Thursday, 29 Jan 2015 11:17 AM

The number of people seeking unemployment aid plunged last week to the lowest level in almost 15 years, a sign hiring wi . . .

Iran Calls on Hezbollah to Kill Netanyahu's Sons

Thursday, 29 Jan 2015 11:16 AM

The sons of Israeli Prime Minister Benjamin Netanyahu have been targeted for assassination by Iran.
 . . .

SC Poll: Mitt Romney Leads Pack of 2016 GOP Prospects

Thursday, 29 Jan 2015 10:43 AM

Former Massachusetts governor and 2012 GOP presidential nominee Mitt Romney has a significant lead among a large pack of . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved