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Americans Averse to Investing in Oil Stocks, According to Edward Jones Survey
added: 2010-08-03

With the ebb and flow of oil stocks buoyed to the lingering crisis in the Gulf, concerns about investing in oil companies continue to swell.

A recent survey from financial services firm Edward Jones shows 65 percent of Americans are reluctant to invest in oil company stocks. An overwhelming 71 percent of women and 58 percent of men say they would not choose oil company stocks if they had money to invest.

The study of 1,009 respondents, which was conducted by Opinion Research Corporation on behalf of Edward Jones, shows that age played a factor in the results. Americans between the ages of 45 and 54 are the most likely to invest in oil company stocks (41%) while those between the ages of 18 and 34 are the least likely to invest in oil company stocks (27%). Nearly three quarters of respondents (72%) between the ages of 18 and 34 say they would not invest in oil stocks.

Despite Americans' dismal views on investing in oil, Edward Jones senior energy analyst Brian Youngberg believes now is an opportune time for investors to consider putting their money in oil stocks.

"We see oil and natural gas rising in the coming months and expect energy stock prices to follow suit," says Youngberg. "Energy stocks offer attractive dividend income, tend to be less volatile over time and can help investors diversify their portfolio and broaden their exposure in the energy sector." Past performance is no guarantee of future results. Dividends can be increased, decreased or eliminated at any time.

Annual household income also played an influential role in the results, as Americans in the highest income brackets are slightly more inclined to put money in oil company stocks than lower earners. Forty percent of respondents with an annual income between $75,000 -- $100,000 and 44 percent of those making more than $100,000 responded they would invest in oil stocks.

The survey showed little difference in opinion based on education levels, household size and geographic distribution. Race did not have a significant influence either, although Hispanics responded most hesitantly toward investing in oil stocks.

Source: PR Newswire

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