The Bunker Portfolio - Don't Lose (in) this War

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The Bunker Portfolio - Don't Lose (in) this War

Postby Gouda » Thu Jul 20, 2006 6:18 am

Do note the terminology and phrasing employed. Yes, I know: boring, nothing new. <br><br><!--EZCODE QUOTE START--><blockquote><strong><em>Quote:</em></strong><hr><!--EZCODE BOLD START--><strong>Worried about war? Try the Bunker Portfolio</strong><!--EZCODE BOLD END--><br><br>If the turmoil gripping the Middle East -- and the stock market -- worsens, these savvy mutual funds should still hold up under fire. But diversification remains a smart strategy in any climate<br><br>Tension is high in the Middle East, and so are blood-pressure levels on Wall Street. Oil prices touched an all-time record of $78.40 on July 14 amid escalating violence in Israel and Lebanon, as major indexes ended the week with three straight days of heavy losses. Geopolitical trouble-spots Iran, North Korea, and Iraq continue to simmer while fears of inflation or recession unsettle the home front.<br><br><!--EZCODE BOLD START--><strong>While it's impossible to predict the outcome of current world events, for the moment let's assume a worst-case scenario.</strong><!--EZCODE BOLD END--> If increased military conflict leads to $100 barrels of oil and a broader U.S. economic slowdown, what should a worried investor do? Under those bearish circumstances, gains would be few and far between. But a "bunker portfolio" with a few smart mutual funds could at least contain the financial damage...<br><br>However, others caution that a properly diversified grouping spanning a full array of asset classes might be the best bunker portfolio of all...<br><!--EZCODE BOLD START--><strong><br>If war is human nature, the sector most likely to gain from continued Mideast turmoil is probably natural resources. </strong><!--EZCODE BOLD END-->Shares of ExxonMobil (XOM, news, msgs) gained 3.3% in the week ended July 14, while Chevron (CVX, news, msgs) advanced 4.2%, despite a 2.3% decline in the Standard & Poor's 500 index. "Energy funds would be a good hedge," says Lipper research analyst Jeff Tjornehoj.<hr></blockquote><!--EZCODE QUOTE END--> <!--EZCODE AUTOLINK START--><a href="http://articles.moneycentral.msn.com/Investing/Extra/TheBunkerPortfolio.aspx">articles.moneycentral.msn...folio.aspx</a><!--EZCODE AUTOLINK END--> <p></p><i>Edited by: <A HREF=http://p216.ezboard.com/brigorousintuition.showUserPublicProfile?gid=gouda@rigorousintuition>Gouda</A> at: 7/20/06 4:19 am<br></i>
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