Home Oil Stocks Matt Badiali: How to Profit From Undervalued Oil Stocks in 2019

Matt Badiali: How to Profit From Undervalued Oil Stocks in 2019

Matt Badiali: How to Profit From Undervalued Oil Stocks in 2019
Matt Badiali: How to Profit From Undervalued Oil Stocks in 2019

If you are looking for smart investments to make in 2019, you would be wise to listen to the advice of Badiali, an intelligent and successful natural resource investor. Many people believe that oil is a bad investment right now, but Badiali disagrees and explains why.

Although making the right move can offer remarkable returns you won’t want to miss, making the wrong choice can cost you a lot of money. This guide explains who Badiali is and why you should take his advice. You will then discover the No. 1 secret to earning a profit from oil stocks over the next 12 months.

Why You Should Listen to Matt Badiali

Many investment experts will give you their thoughts and opinions on what stocks to buy and which ones you should avoid, and a lot of people ask why they should trust Badiali more than the other experts who offer their guidance.

Many of the experts who offer advice are good at what they do and track global trends to reach their conclusions.

That approach can work but does not always give the most accurate predictions. Badiali has a master’s degree in science and uses his education to decide what stocks are worth attention, but that is only half of the story.

Badiali has traveled the world and visited oil fields and refineries in some of the most relevant locations. Rather than basing his predictions off numbers on a screen or in a report, he has first-hand evidence of the direction in which the natural resource market is moving.

His success has earned him a positive reputation among wise investment experts from all backgrounds and walks of life. Although nobody is right 100 percent of the time, Badiali comes as close as possible, and those who listen to what he says will often achieve impressive returns.

Iran Oil Sanctions

U.S. President Donald Trump imposed sanctions that restricted Iran’s exportation of oil, a move that drove stock prices through the roof. Other major players in the oil market revamped their production in an effort to compensate for the reduced supply. This move caused a spike in demand for oil as major companies around the world planned for a shortage, and investors scrambled to take advantage of the trend while they still had time.

The outlook remained the same for a while, and those with a vested interest in the oil market were pleased with the outcome. Things, however, took an unexpected turn when the United Nations forced the U.S. to lift sanctions placed on Iran, and the market took another unexpected turn that caught many investors off guard.

On Daily Forex Report: Oil Stocks Rally on Lower Output

Oil Overproduction

When many investors thought that oil stocks were on an extended upward trend, the United Nations’ decision to remove the United States-imposed oil sanctions on Iran disrupted the trend, and the market made a dramatic shift. Since other nations increased oil production to compensate for the sanctions, the removal saturated the market toward the last few months of 2018.

This caused the supply of oil to surpass the demand, a surplus that tanked the price of oil stocks in all parts of the world. Investors were disheartened to watch the once high-priced oil stocks fall faster than they knew what happened. The drop in oil prices scared many investors away from the oil market, which further decreased stock values.

The Myth Disproved

When most of the world thought oil prices were down for the count, Badiali had other ideas. During Iran’s sanctions, other countries increased their oil production and exportation, and everyone thought the supply was higher than it had been in years. The truth, though, is that the supply stayed the same; it was only the speed of production that went up, creating the illusion of ample oil supplies.

The increased speed of production could mean that the supply will again drop below the demand, and oil stocks will shoot back up if that’s the case. Matt Badiali remains confident that oil is a wise investment for those who know where to put their money. Other experts are split and don’t know where to turn, but they must make their decision because the next change will likely happen in the coming months.

Investments to Avoid

Matt Badiali has more confidence in the oil market than most people, but he still says investors should use caution when choosing companies in which to invest. A lot of the small oil companies, according to Badiali, might not survive long enough to enjoy the next price jump.

So investors buying cheap stocks from small companies might soon regret their decision, and you don’t want to fall into that trap. Instead, you have to place your money in major companies that are the most likely to survive the temporary downturn.

If you do so, you can expect impressive returns when the demand skyrockets, and you will be pleased with your decision. The amount you can expect to make depends on a range of factors. Either way, you will likely earn a profit of which any investor would be proud.

What Oil Companies Have to Say

The current price of oil stocks is based on the assumption that oil prices will stay below $50 a barrel over the next year or more. To get a clear picture of what to expect over the next few months, Matt Badiali suggests that we look at what the oil companies have to say. If an investor makes a wrong move in the oil market, the investor loses money but is not likely to go bankrupt.

Oil companies that make bad predictions can fail, so they have much more to lose than anyone else. In a survey, 64 percent of oil companies stated they believe the price of oil will go above $60 per barrel before the end of 2019. If you invest in oil stocks based on the current numbers, you could see your returns double before Christmas of 2019.

Final Thoughts

The imposition and lifting of Iran sanctions created a lot of waves in the oil production and distribution industry, and experts around the world are split on where to turn next. If you take anyone’s advice, you should listen to the words of an expert who understands how natural resource markets operate.

You will give yourself the best odds of reaching the outcome you want when you follow the footsteps of those with a proven record of success. You must keep in mind that nobody can know for sure how the next few months will unfold in the oil industry, but every move you make has some element of risk. Look to the future with an open mind so that you can spot opportunities before they pass. When it comes to smart investments for 2019, the oil industry is an attractive option that has a lot of potential.