Monday, February 13, 2012

Why You Should Not Buy USO

Larry Bermann pointed out on TV today why you should not buy USO for the long term, nor any other commodities ETFs that trades futures for that matter.

USO was launched when oil was at around $60. Today oil around $100. How about USO:

How is this possible? The reason is the same we point out so often: contango kills these ETFs.

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