REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Although energy prices have declined dramatically in the past few months, the pain at the pump I suffered when gas was $4 a gallon is still fresh in my memory. Even more vivid is the near coronary from the $5 a gallon I payed for diesel last August, which took a lot of the pleasure out of our summer motor home vacation.
I’ve been looking at buying some United States Oil (USO), an oil ETF, in an attempt to hedge against the possibility of another huge run up in oil prices. I’m not talking about a huge investment, maybe something in the range of 2-3% of my portfolio – enough to feel like I’m at least partially insuring against another big hit. I know I have energy stocks in the Wellesley, Wellington funds I own, but the impact of increases in energy prices gets easily diluted by other market movements. Plus, I want to be able to harvest some of the gains to help pay for increased fuel costs and I do not want to sell my core funds for this purpose.
What am I missing in my thinking? Are there better funds available other than USO? Better ways to hedge – other than the obvious (selling the motor home and backpacking )?
I’ve been looking at buying some United States Oil (USO), an oil ETF, in an attempt to hedge against the possibility of another huge run up in oil prices. I’m not talking about a huge investment, maybe something in the range of 2-3% of my portfolio – enough to feel like I’m at least partially insuring against another big hit. I know I have energy stocks in the Wellesley, Wellington funds I own, but the impact of increases in energy prices gets easily diluted by other market movements. Plus, I want to be able to harvest some of the gains to help pay for increased fuel costs and I do not want to sell my core funds for this purpose.
What am I missing in my thinking? Are there better funds available other than USO? Better ways to hedge – other than the obvious (selling the motor home and backpacking )?