Softechie: To play the energy sector, I find it useful to divide it into two distinct camps: (1) oil refiners & drillers and natural gas; (2) New Age power producers and electricity/power producers.
IMHO, the best way to play is with mutual funds, which give you broad exposure to each sector. My recommendations are:
oil/natural gas: ICENX, FSTEX, UMESX, FSNGX, GASFX
utilities/power producers: SSGRX, FRUSX, IUTLX, PRUAX
Several of these have loads, so check that aspect out.
My recommendation would be to allocate a certain percent of your portfolio to this broad sector (?10%) and divide it equally between the two camps -- they are quite separate and their prices are affected by very different global and external events. Hope this helps. |
