Um, well, hmm. This is uncomfortable.
You see, ah, I'm making money off the inflated gasoline prices.
Here's why. No, I don't own an oil company.
My Renewable Energy Portfolio is Making Cash
Several years ago I decided to create an "renewable energy portfolio" of corporate stocks, because I absolutely knew that oil prices were headed skyward (we all knew this back in 1999, remember?) and decided that certain companies would greatly benefit from this. First, oil companies would benefit, as we've seen. But also, the renewable energy companies would benefit.
As Goes the Price of Oil, So Go the Prices of Renewable Stocks
The reason renewables benefit is because as the price of oil rises, it begins to overtake the costs of the renewables. For instance, using oil to fire power plants has always been cheaper than, say, wind turbine energy. But now, it's not. Oil is more expensive. So, companies that make wind turbines are making tons of money, because people are starting to turn to these alternatives, including companies like American Electric Power. They bought out Enron's entire wind farm collection in Texas in 2002, and having been on a buying streak in renewables ever since.
So, my renewable energy portfolio has been doing really well. In fact, my investments there far outpace what I pay extra in heating bills and to put gasoline in the tank of my car. So, overall, I'm making out like bandit.
Start Your Own Renewable Energy Portfolio Today!
So how do you fight high gasoline prices? Start your own renewable energy portfolio of stocks. Think wind, solar, geothermal, biodiesel, hydrogen and hybrid cars. You really can't go wrong. (Due diligence in picking good company stocks is still important, of course.) As much as my portfolio has increased in the past six years, it's nothing to what is coming as oil prices continue to rise worldwide.
Oh, why didn't I buy a renewable energy mutual fund? There weren't any good ones back then. I found one but it had performed so poorly that I could not stomach putting cash into it. I haven't checked to see how it's done since 2002, but I'll bet it's doing fine.
You know what? I just checked and it's still doing pretty poorly. It seems to be a very volatile fund, up like crazy one year, and down even more the next year. You might be better off on your own.