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How Rising Energy Prices Can Affect Your Portfolio Common Sense on Complex Issues.

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Presentation on theme: "How Rising Energy Prices Can Affect Your Portfolio Common Sense on Complex Issues."— Presentation transcript:

1 How Rising Energy Prices Can Affect Your Portfolio Common Sense on Complex Issues

2 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. 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.

3 The costs don’t 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. It costs more to fly in a plane, take a cab, run a family farm, deliver goods and services, etc.

4 The costs of energy don’t stop at transportation either. Imagine this winter if your heating bill with natural gas, electric or home heating oil goes up substantially. Imagine this winter if your heating bill with natural gas, electric or home heating oil goes up substantially.

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

6 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 wasn’t 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!

7 As an example: Placing $50,000 at a fixed rate returned $1,000 @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. Placing $50,000 at a fixed rate returned $1,000 @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.

8 You may think you have to have your eyes examined to believe the energy prices!

9 Here are some of the types of companies that make up a part of the energy market. Utilities (electric, gas, coal fired and nuclear) Utilities (electric, gas, coal fired and nuclear) Exploration companies that find the energy in the ground or off shore Exploration companies that find the energy in the ground or off shore Companies that transport the energy above or below ground and pipelines Companies that transport the energy above or below ground and pipelines Refineries and storage facilities Refineries and storage facilities Companies that make the tools to take out the energy out of the ground Companies that make the tools to take out the energy out of the ground Companies that ship oil or energy around the globe Companies that ship oil or energy around the globe

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

11 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. 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.


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