How Rising Energy Prices Can Affect Your Portfolio

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How Rising Energy Prices Can Affect Your
Portfolio

• Common Sense on Complex Issues

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Have you noticed how much it costs to fill up
your tank lately?

• Whether you have a small sports car, an SUV or a
  big bus, the rising costs at the pump are felt by
  all of us.

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The costs dont just affect personal
transportation but in business also.

• It costs more to fly in a plane, take a cab, run
  a family farm, deliver goods and services, etc.

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The costs of energy dont stop at transportation
either.

• Imagine this winter if your heating bill with
  natural gas, electric or home heating oil goes up
  substantially.

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Some people want to consider alternative
energy sources like wind power.

• Maybe you have thought about buying a fuel
  efficient car, using public transportation or
  moving to a warmer climate.

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Other people decided they want to get
even or even ahead!

• They want to have the energy companies send them
  a monthly check to pay their bills instead of
  visa versa! How did they accomplish this? They
  looked in their bank accounts and decided 2-3
  just wasnt going to do the job they needed
  finished! They were willing to take a risk by
  putting their money in the same companies who had
  the rising energy profits and receiving a
  monthly/quarterly dividend!

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As an example

• Placing 50,000 at a fixed rate returned 1,000
  _at_2 or 1,500 at 3. By investing in a gas
  pipeline, a propane company, a Royalty trust,
  that are paying dividends currently or between 5
  and 10, which are not guaranteed, they could
  earn more income. The difference in returns could
  pay for gas for a car for a year assuming you
  fill up the tank weekly at about 50 per tank,
  That assumes no appreciation on the investments
  at all.

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You may think you have to have your eyes
examined to believe the energy prices!
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Here are some of the types of companies
that make up a part of the energy market.

• Utilities (electric, gas, coal fired and nuclear)
• Exploration companies that find the energy in the
  ground or off shore
• Companies that transport the energy above or
  below ground and pipelines
• Refineries and storage facilities
• Companies that make the tools to take out the
  energy out of the ground
• Companies that ship oil or energy around the
  globe

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Here are some of the types of companies that make
up a share of the energy market

• Companies that clean up the air and water from
  the by products of manufacturing energy
• Companies that manufacture oil rigs
• Companies that fly crews on and off oil rigs
• Companies that search for energy globally
• Companies that construct energy plants
• New technologies like wind and solar

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Are we in the early or late stages of the energy
cycle?

• Guess that depends on your point of view, but one
  thing is clear. Making decisions that will affect
  your portfolio based on research, planning and
  execution can make the difference to wondering
  what happened, knowing what happened and making
  it happen.