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Why Every Portfolio Needs A Natural Resource Hedge (Part 2) September 29, 2006

Posted by Andy Robinson in : Market Research , add a comment

In this article I want to demonstrate how owning mutual funds made up of natural resource companies can provide a stabilizing effect on your portfolio. It can allow you as an investor to obtain similar long-term returns with a much less bumpy ride along the way. This is true even if the underlying fundamentals of natural resources don’t end up being as strong as I believe them to be. In my previous article dated 9/19/06, I outlined the various supply and demand factors that lead me to believe that natural resources will be a strong long-term investment. However, for the sake of this article, I want to show the benefits of owning natural resources even if they perform similarly, or under-perform, their results over the past decade or so.

Why Every Portfolio Needs A Natural Resource Hedge (Part 1) September 19, 2006

Posted by Andy Robinson in : Market Research , 1 comment so far

While the prospects of profiting off of energy by owning either stocks or oil futures may be uncertain in the short to intermediate-term economy, there are two compelling arguments that I want to present to encourage every investor to hold a portion of their portfolio in a Natural Resources fund. My first case is based on the global supply and demand outlook for energy over the long-term. My second argument (which will be forthcoming in my next article) demonstrates statistically the result of adding a Natural Resource fund to one’s portfolio. I also intend to recommend some funds next article that I feel have done the best job of outperforming their peers.