Tuesday, May 20, 2008

A Personal Hedge Against The Rise In Gasoline

In April 2007 I bought into the Vanguard Energy Fund. I used money from a 401K account which had luke warm returns. Although it wasn't planned as a hedge against the increasing price of gasoline that's exactly what it's been. The 1 year return has been 18.2% even with a downturn in oil prices last year. However my return has been 17.5% for 2008 with an annualized rate of approximately 40%. This clearly has outpaced my cost of gasoline.

In addition our investment club (ICK) has holdings in Exxon.

Consider investing in oil/energy as a hedge against rising prices.

(Tim)

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