Beware the oil trap

Energy stocks are great long-term investments, but you should buy them very carefully.

NEW YORK (MONEY) — Seems like only a couple of weeks ago, everyone was worried that oil was on its way to $100 a barrel. Since then, the oil price has fallen 15 percent to below $66.

It’s fairly clear that the cost of energy will rise over the next couple of decades. And top-quality oil & gas stocks figure to be excellent long-term investments.

But you have to be careful about when you buy them. Even if the value of oil reserves rises considerably in the years to come, oil prices – and energy stocks – could still go a lot lower in the short run.

The greatest success will go to investors who buy slowly and shrewdly.

CNN/Money