by Alexander Green, Investment U Chief Investment Strategist

Monday, December 26, 2011: Issue #1672

[Editor’s Note: Alexander Green, author of the best-selling book Beyond Wealth, originally wrote this essay for his Oxford Club weekly newsletter Spiritual Wealth.

In the spirit of the holidays we decided to depart from our normal financial topics to bring you Alex’s inspiring anecdote of Charles Dickens, “The Man Who Invented Christmas.”

Last weekend, my family, some friends and I attended a performance of “A Christmas Carol” at the American Shakespeare Center in Staunton, Virginia.

It was superb. The kids particularly enjoyed it and were surprised to learn that the author – Charles Dickens – is the man most responsible for the modern celebration of the season. This is a story that deserves to be more widely known…

Dickens is one of the greatest writers in the English language. He published 20 novels in his lifetime. None has ever gone out of print.

Yet in 1843, Dickens’ popularity was at a low, his critical reputation in tatters, his bank account overdrawn. Facing bankruptcy, he considered giving up writing fiction altogether.

In a feverish six-week period before Christmas, however, he wrote a small book he hoped would keep his creditors at bay. His publishers turned it down. So using his meager savings, Dickens put it out himself. It was an exercise in vanity publishing – and the author told friends it might be the end of his career as a novelist.

Yet the publication of A Christmas Carol caused an immediate sensation, selling out the first printing – several thousand copies -in four days. A second printing sold out before the New Year, and then a third. Widespread theatrical adaptations spread the story to an exponentially larger audience still.

And it wasn’t just a commercial success. Even Dickens’ chief rival and foremost critic, William Makepeace Thackeray, bowed his head before the power of the book: “The last two people I heard speak of it were women; neither knew the other, or the author, and both said, by way of criticism, ‘God bless him!’ What a feeling this is for a writer to be able to inspire, and what a reward to reap!”

Today we all know the tale of tight-fisted Scrooge – “Bah! Humbug!” – and his dramatic change of heart after being visited by the ghosts of Christmas Past, Present and Future.

But A Christmas Carol didn’t just restore Dickens’ reputation and financial health. It also breathed new life into what was then a second-tier holiday that had fallen into disfavor.

As Les Standiford notes, in early nineteenth century England, the Christmas holiday “was a relatively minor affair that ranked far below Easter, causing little more stir than Memorial Day or St. George’s Day today. In the eyes of the relatively enlightened Anglican Church, moreover, the entire enterprise smacked vaguely of paganism, and were there Puritans still around, acknowledging the holiday might have landed one in the stocks.”

The date of Christmas itself is an arbitrary one, of course. There is no reference in the gospels to the birth of Jesus taking place on December 25, or in any specific month. When Luke says, “For unto you is born this day in the city of David a Savior,” there isn’t the slightest indication when that was.

And while the day was marked on Christian calendars, celebrations were muted. That changed when A Christmas Carol became an instant smash, stirring English men and women to both celebrate the holiday and remember the plight of the less fortunate. This was exactly the author’s intent.

Dickens grew up in poverty and was forced into child labor. (His father, a naval pay clerk who struggled to meet his obligations, was thrown into debtor’s prison.) Yet despite these handicaps, Dickens educated himself, worked diligently, and rose to international prominence as a master writer and storyteller.

He was a great believer in self-determination and, in particular, the transformative power of education. With learning, he said, a man “acquires for himself that property of soul which has in all times upheld struggling men of every degree.”

Yet in the London of Dickens’ day, only one child in three attended school. Some worked in shops, others in factories. Still others resorted to theft or prostitution to live. Dickens was determined to expose their plight. A Christmas Carol, in particular, is a bald-faced parable, something few novelists attempt… and even fewer successfully execute.

Dickens said his novels were for the edification of his audience. His goal was not just to entertain, but to enlighten. And A Christmas Carol was designed to deliver “a sledge-hammer blow” on behalf of the poor and less fortunate.

It worked. Scrooge – a character as well known as any in fiction – is now synonymous with “miser.” Yet through his remarkable transformation, the author reminds us that it is never too late to change, to free ourselves from selfish preoccupations.

Dickens’ biographer Peter Ackroyd and other commentators have credited the novelist with single-handedly creating the modern Christmas holiday. No, not the contemporary orgy of shopping, spending and ostentatious display. In A Christmas Carol, there are no Christmas trees, gaudy decorations or – apart from “the big, prize turkey” at the end – any presents at all. The only gifts exchanged are love, friendship and goodwill.

In one small book, Dickens changed the culture, inspired his contemporaries, and helped restore a holiday they were eager to revive.

More than a century and half later, A Christmas Carol is still a tonic for our spirits – and an annual reminder of the benefits of friendship, charity and celebration.

Good investing,

Alexander Green

by Alexander Green, Investment U Chief Investment Strategist
Thursday, December 16, 2011: Issue #1666

[Editor's Note: Independent Online reported on Thursday, "Hackers are bombarding the world's computer controlled energy sector, conducting industrial espionage and threatening potential global havoc through oil supply disruption."

Ludolf Luehmann, an IT manager at Shell Europe's biggest company, told the publication, "It will cost lives and it will cost production, it will cost money, cause fires and cause loss of containment, environmental damage - huge, huge damage."

In light of this chilling warning, along with recent developments on the latest super-bug, Duqu, we decided that Alexander Green's May article about cyber crime and cyber security was as relevant as ever. Alex has been pounding the table on cyber security stocks since 2009 and believes that 2012 will be the tipping point. Find out why he's so bullish on the sector below…]

Do you want to score big in the stock market? Then recognize an unstoppable trend and get on the gravy train before it’s too late.

In the 80s, for example, investors scored big in cable television and cellphones. Huge money was made again in the 90s on internet and technology shares. Commodities like oil and gas – and gold and silver – made investors millions over the past decade. Now an even bigger trend is emerging. Yet I estimate that not one investor in 10 has a nickel invested yet.

Consider this your wake-up call.

The internet was originally intended for a few thousand researchers, not billions of users who don’t know or trust each other. The designers placed a premium on ease of use and decentralization, not privacy and security. They never dreamed the internet would ultimately be used for trillions of commercial transactions.

And where there are great gobs of money, you will always find thieves…

Cybercrime Tops Physical Crime in 2011

Last year, for example, one out of every four companies had information, goods, or money successfully stolen by cyber criminals. (For the first year ever, the total cost of electronic theft actually topped that of physical theft.) Your social security number, personal history and medical information, your credit card numbers, even the cash you have in trusted financial institutions, are all at potential risk.

You may have read the reports a few weeks ago that Sony was forced to shut down its PlayStation network due to hackers who stole users’ information. Even top technology companies are often powerless to stop cyber crime. Sony recently admitted that it had already been hacked several times before.

This is not unusual. Companies are reluctant to admit that they have been violated by cyber criminals. Why? Number one, they don’t want to reveal their vulnerabilities to other potential hackers. Even more importantly, they are scared – and for good reason – that they’ll lose the confidence of their customers.

Yet that’s about to change. I expect the SEC to soon compel public companies to disclose their cyber-attack vulnerabilities. A group of lawmakers – including Jay Rockefeller, the powerful Chairman of the Senate Commerce Committee – has already sent a letter to the SEC asking it to issue guidance on cyber security.

The letter says, “In light of the growing threat and the national security and economic ramifications of successful attacks against American businesses, it is essential that corporate leaders know their responsibility for managing and disclosing information security risk.”

This is no idle threat. A 2009 study by insurance underwriter Hiscox found that 38 percent of Fortune 500 companies neglected to disclose the risk of data-security breaches in their public filings.

Capitalizing on Cyber Security

Does anyone really believe the SEC isn’t going to move on this issue? (Update: In October, the SEC announced that it was finally going to require more disclosure from companies on cyber attacks.)

The questions that you should be asking as an investor are, “Who is likely to benefit from this development?” and, “Where should I invest to capitalize on this trend?”

A small cadre of companies is working to protect consumers, businesses and government agencies against a wide array of cyber threats. Most of them are already highly profitable.

But tens of billions more of government money will soon be spent beefing up national security, protecting U.S. infrastructure and safeguarding the financial system. And businesses – increasingly aware that everything from research papers to client lists are being targeted by criminals and corporate spies – will soon spend billions more in this area, too.

This is a ride you won’t want to miss.

Good investing,

Alexander Green

by Alexander Green, Chief Investment Strategist
Monday, March 14, 2011: Issue #1468

My publisher recently forwarded me a note from an Investment U reader…

“You guys are recommending a 5% gold allocation in your model portfolio. That’s not nearly enough. I currently have an 80% gold allocation. Given the sorry state of the world, I’ll bet I’m going to make a lot more money than you will in stocks.”

I’m tempted to take that bet.

Sure, gold is up five-fold over the last decade and three-fold over the last five years. But that tells you nothing about where gold will be a year from now, or a month from now.

True, gold may go higher. Perhaps a lot higher. But would I bet 80% of my portfolio on it?

Not a chance. This investor – who clearly lacks experience more than confidence – may be right about the near-term direction of gold. But he’s taking a boatload of risk.

More importantly, he’s making a fundamental investing mistake…

Successful Investing Comes Down to Two Choices

When it comes to the financial markets, no one knows for certain what the future holds. That means every investor faces a stark choice.

• Either: Run your portfolio by making a series of guesses about what lies ahead for the economy and the stock market, jumping in and out of stocks, or bonds, or gold, or sector funds.
• Or: Invest according to proven, time-tested principles.

It amazes me just how many investors opt for the former, following some dubious analysis or making outlandish guesses. It’s even more surprising when you consider the stakes.

Protect and enhance your investment capital over time and you can live a life with all kinds of choices, plenty of financial security and the peace of mind that goes with it.

On the other hand, if you gamble with your savings, you might find that not only have your savings vanished but, more importantly, you no longer have enough time to make up for your mistakes.

People who grossly mismanage their portfolios almost always make the same mistake. They forget to ask that one basic question: What if I’m wrong?

A Powerful Statement From the World’s Greatest Investor

Given recent events, I understand why there’s a lot of skepticism about the outlook for stocks. The media harps on unrest in the Middle East, the spike in oil prices, the real estate slump, high unemployment and unwieldy federal deficits.

But they spend much less time on rock-bottom interest rates, low inflation, an improving economy and record corporate profits.

Listen to different sources and you can come up with completely different conclusions about the future. But here’s someone worth hearing:

Warren Buffett – the world’s greatest investor – recently told CNBC: “I’m 100% enormously optimistic about the future for this country. There’s no way you can bet against America and win… We’ve unleashed human potential and will continue to do so. Twenty years from now, your kids and grandchildren will live far better than you live.”

Most Americans don’t agree with this. Some find it completely unbelievable. That’s why The Oxford Club has put together a special report explaining why America’s best days are still ahead – and inviting you to take full advantage of a more optimistic investment outlook.

Good investing,

Alexander Green

Publisher’s Note: There was a problem with the data featured in Friday’s Investment U article, “Electric Vehicles: Green Power or Just Adding to the Pollution Problem.”

The data came from the North American Electric Reliability Corporation and indicated where power for electric vehicles would likely come from in the future, once the electric vehicle fleet has matured. We wrongly implied that the data referred to the current power grids of various U.S. regions. We regret the error and thank our readers for helping to point it out. We have corrected the article.

~ Jay Livingston, Publisher, Investment U

by Alexander Green, Chief Investment Strategist

Monday, February 28, 2011: Issue #1458

Two weeks ago, I spoke at The World Money Show in Orlando – one of the largest investment conferences in the country. More than 11,000 investors registered to attend.

(Unfortunately, the conference room was far too small. It filled up half an hour before I spoke and we ended up turning away a couple of hundred people. Not good.)

In my talk, I argued that the only certainty in the world is uncertainty. Then I demonstrated how investors can effectively capitalize on this uncertainty, starting with the seven factors that determine the future value of your portfolio…

Seven Factors That Shape the Value of Your Portfolio

Those seven factors are:

• The amount you save.
• The length of time it compounds.
• Your asset allocation.
• Your security selection.
• Your annual compounded return (as a result of 3 and 4).
• The expenses you absorb.
• The taxes you pay.

As I walked around the event, however, I listened to other speakers talking instead about the outlook for the stock market. And I kept hearing the same thing.

No, not persistent bullishness or bearishness. There’s always plenty of both at a conference of this size. The universal part was analysts confirming just how right their previous market forecasts had been.

Count me as skeptical.

“I Wasn’t Wrong… Just Early”

If I flipped a coin and said “heads” and it came up heads, would you be impressed? If not, why not?

What if I flipped it again and said “tails” and it came up tails this time. Would that impress you?

Maybe on the next coin flip, I get it wrong. Then I remind you that no system is perfect and that no one bats a thousand. Does that add to my stature and make my next prediction more credible?

The idea is laughable.

Yet listen to some market gurus and you’d think they’re all a bunch of smart guys who never get blindsided by events. Even those who missed the boat generally claim that they weren’t wrong… “just early.”

I suspect that more than a little revisionist history is going on here. The truth is that even the market forecasters who are right are generally dead wrong.

Let me give you an example…

The Bear Philosophy: Every Silver Lining Has a Cloud

I know a famously bearish investment analyst – one who has been bearish not just for years but for decades. He sincerely believes that every silver lining has its cloud.

Just before the financial crisis of 2007-2009, he let his readers know that we were on the edge of catastrophe. He predicted that inflation would soar, the dollar would crash, foreigners would repatriate their assets and the stock market would keel over.

And it did.

Today, he insists he “called the recent market crash.” It’s true he was bearish before the market tanked – and I hate to quibble – but…

• Inflation is 1.2%.
• The dollar is up against the euro and the yen.
• Foreigners have clearly not repatriated their assets.

Yet he crows about how much money you would have made if you’d listened to his analysis before the recent meltdown. Of course, you’d also have made a ton if you’d bet large on my first call of “heads” a few minutes ago.

What? You say my forecast had nothing to do with the result, that my success was meaningless?

That brings me to analysts who are busy claiming that they called the recent spike in oil and gold prices…

The Core Principles for Investment Success

Think about it: Who foresaw that a frustrated market vendor in Tunisia would set himself ablaze in the street – a move that would ultimately bring down the Tunisian government? In turn, who knew that would lead to a successful uprising in Egypt and then anarchy in Libya – developments that would cause oil (and thus gold) to soar?

Who? Precisely no one.

There’s a lot of money to be made in the prophecy racket… I mean, the market forecasting business. But here’s the industry’s dirty little secret:

Real investment success doesn’t come from following the right predictions. It comes from following the right principles:

• Allocate your assets properly.
• Diversify your portfolio broadly.
• Buy quality investments.
• Reduce your investment costs.
• Tax-manage your portfolio.

Yes, you can make it a lot more complicated than this. But you really don’t need to.

Good investing,

Alexander Green

by Alexander Green, Chief Investment Strategist
Monday, May 10, 2010: Issue #1256

Two weeks ago, I wrote a column recommending Treasury Inflation-Protected Securities (TIPS) as protection against potential inflation down the road.

It prompted a flood of questions and challenges. I want to address those, but let me start by briefly re-stating my case:

1. Unprecedented government spending – including $108 trillion in unfunded liabilities for social security, Medicare and new universal healthcare benefits – is putting the nation at risk.
2. With interest rates near zero, the Federal Reserve cannot take one traditional step – lowering short-term rates – to revitalize a weakened economy.
3. In a severe economic downturn or double-dip recession, politicians – with the reluctant assistance of the Fed – could opt to spend even more massively to try to jump-start the economy.
4. The result could be stagflation: slow growth with higher inflation. (And although we haven’t seen it here in almost 30 years, perhaps even hyper-inflation.)

I don’t know what the odds of this happening are – and neither does anyone else. But I think investors would be foolish not to at least consider the possibility…

Inflation or Deflation? Hedge Your Bets This Way…

Respondents who disagreed generally fell into one of two camps…

• They either believed that deflation is more likely than inflation.
• They thought inflation was likely, but since Congress will almost certainly be the culprit, they don’t want to reward the mischief-makers by buying any kind of government securities.

Let me handle the former objection first: Is deflation more likely than inflation? Perhaps. No one can say. You should probably own a good slug of Triple-A insured municipal bonds just in case. (Because future tax rates are almost certainly going higher.)

By all means, make some plans for a deflationary scenario. But plan for the possibility of inflation, too. This is what diversification is all about. Hedge your bets.

But why use TIPS as your hedge, rather than a traditional inflation hedge like precious metals? In my view, you should use both. But remember, gold and silver are less than perfect hedges.

They have both performed exceptionally well over the last 10 years, for example. Gold has more than quadrupled. Silver has done even better. But the 20 years before that were an unmitigated disaster.

But no matter whether inflation is low or high, TIPS will protect you. How?

The Benefits of Buying Treasury Inflation-Protected Securities

• Regular Interest Payments: TIPS pay interest every six months, just like a regular Treasury bond. But unlike traditional bonds, your principal increases each year by the amount of inflation, as measured by the consumer price index (CPI). Semi-annual interest payments also increase by the amount of inflation.
• Tax Benefits: The interest you receive is exempt from state and local income taxes (but not federal). TIPS are also less volatile than traditional bonds and are also excellent diversifiers.

There are three good ways to buy inflation-protected Treasuries:

1. Directly: http://www.treasurydirect.gov/indiv/research/indepth/tips/res_tips_buy.htm
2. Through the Vanguard Inflation-Protected Securities Fund (VIPSX).
3. Through its ETF equivalent – the iShares Barclays TIPS Bond Fund (NYSE: TIP).

I recommend TIPS for two primary reasons…

1. I’m not a moralist trying to claim the high ground. I’m just trying to protect myself, my family and my heirs from potentially destructive hyper-inflation. I don’t want to remain true to my free-market principles only to see the net worth I’ve accumulated over a lifetime torpedoed.
2. There is no private-sector alternative here. For good reason, private and public companies don’t want to leave themselves vulnerable to sky-high interest and principal payments down the road if inflation takes off. So they don’t issue inflation-protected securities. That makes TIPS the only game in town.

I know that some libertarians and laissez-faire capitalists will refuse to buy Treasury securities, period. But as I’ve pointed out, other inflation hedges sometimes don’t work. So there is no small risk taking another approach.

In sum, there is only one investment that guarantees a return that exceeds inflation in the years ahead: TIPS.

And in my view, that makes them an indispensable part of your portfolio.

Good investing,

Alexander Green

Editor’s Note:It’s beaten the performance of the S&P 500 every year since 2003.

It’s churned out a remarkable 1,083% in cumulative gains over that time.

It’s been called a “superb, simple, smart, sophisticated strategy.”

It’s not risky or complicated… it’s a pragmatic, conservative approach to investing, based on a system that won a Nobel Prize for Economics.

And it could change the way you invest forever.

And this extraordinary, step-by-step plan to investing, beating the markets, making money and maintaining wealth is all laid out in Alexander Green’s groundbreaking book – The Gone Fishin’ Portfolio: Get Wise, Get Wealthy… And Get on with Your Life.

by Alexander Green, Chief Investment Strategist
Monday, April 12, 2010: Issue #1236

It may seem like a dream for multi-millionaires only: Living in a mountainside or seaside villa with a spectacular view. Having a maid, a cook and a gardener take care of your home. Having your personal chauffeur drive you to town…

But it’s not. The dream is already a reality for thousands of middle-class Americans. And as the cost of living, housing, insurance and healthcare in the United States keeps rising, many tens of thousands more will soon follow them.

Whether you’re seeking an idyllic locale, the excitement of a new culture, the adventure of living in a foreign destination, or just a better lifestyle for less money, there has never been a better time to retire overseas.

And you may be surprised to learn that you can do it for as little as $900 a month…

How to Retire Overseas: The Complete A-Z

If you’ve even considered this idea before, you owe it to yourself to pick up Kathleen Peddicord’s superb new book – How to Retire Overseas.

I’ve known Kathleen for well over a decade. As the publisher and editor of International Living for more than 25 years, she understands living and retiring overseas better than anyone I’ve met.

Although she’s an American through and through, Kathleen and her family have lived in Paris, Ireland and now in Panama. She has explored business, investment and retirement opportunities throughout North America, Europe, Asia and Latin America.

In short, she knows her stuff.

She can tell you which countries:

• Have the best year-round temperatures.
• Which ones offer exemptions from import duties (the tax you’re charged when importing personal items or household goods).
• Which ones will allow you to employ a full-time maid for $150 a month or less.
• Which ones allow you to live comfortably on $1,200 a month… or less.

Retiring Overseas: 14 Countries with the Greatest Advantages

Kathleen goes onto list 14 countries that offer the greatest advantages to overseas retirees, including highly desirable locations like France and Argentina. For each country, she reveals the essential facts about:

• Cost of living
• Housing
• Climate
• Healthcare
• Infrastructure
• Language
• Culture
• Recreation and entertainment
• Safety
• Taxes
• Education
• Accessibility to the United States
• Special benefits for foreign retirees

The Benefits of An Overseas Lifestyle Without Giving Up U.S. Citizenship

Can you imagine yourself in a new home – on the front steps leading to a sugar-white beach? Sitting atop a balcony overlooking a bustling city? On a hillside villa with a superb view?

You don’t have to give up your U.S. citizenship. Kathleen shows you how to handle all the visa and passport requirements, as well as how to find or rent your home, establish secure bank accounts, obtain free or low-cost health insurance, make friends in your new hometown and avoid common pitfalls and mistakes.

Some, of course, have no inclination to live abroad. Others – like me – would relish the opportunity.

If you share my passion to really experience the world outside our borders – not just as a tourist, but also as a local – check out How to Retire Overseas. Even with the weak greenback, you can live in paradise for far less than you’d expect.

But you shouldn’t try it without an experienced guide. And I know none better than Kathleen Peddicord.

Alexander Green

Editor’s Note: There’s no better way to yourself on the fast-track to a secure, comfortable retirement than by following the recommendations in The Oxford Club’s Ultimate Retirement Letter. Designed specifically with retirees in mind, the portfolio is geared towards safer income investments that generate reliable, steady income over time. This monthly letter is just one of the many benefits that come with being an Oxford Club member. For the full details, take a look at Alexander Green’s report.

by Alexander Green, Chief Investment Strategist
Thursday, December 3, 2009: Issue #1150

Some day in the future, human beings will likely colonize Mars. But if I suggested you invest in its colonization now, you’d rightly think I was a few cards short of a full deck.

The same is true of much-ballyhooed “alternative energy.”

Someday, nano-engineered solar panels and wind turbines may power the nation and the rest of the world. But it won’t be anytime soon. Today, wind and solar combined make up just one-sixth of 1% of American energy consumption.

As for the Cassandras who insist we simply don’t have any choice but to look elsewhere and that our planet is running out of oil and natural gas… well, take it with a whole shaker full of salt.

Here’s why – and how we can play the current oil and natural gas investment situation…

How to “Run Out of Oil” Multiple Times

Consider this from Pulitzer Prize-winning columnist, George Will:

“In 1914, the Bureau of Mines said U.S. oil reserves would be exhausted by 1924. In 1939, the Interior Department said the world had 13 years worth of petroleum reserves.

In 1970, the world’s proven oil reserves were an estimated 612 billion barrels. By 2006, more than 767 billion barrels had been pumped and proven reserves were 1.2 trillion barrels. In 1977, Scold-in-Chief Jimmy Carter predicted that mankind ‘could use up all the proven reserves of oil in the entire world by the end of the next decade.’ Since then, the world has consumed three times more oil than was then in the world’s proven reserves.”

The world’s population is rapidly rising, of course. And so is discretionary income. Nearly 2 billion of the world’s 6.2 billion population don’t have electricity and have never flipped a light switch.

So surely that means nuclear power is likely to play a major role in meeting future energy demand?

Nope.

Forget Nuclear… Oil and Natural Gas Will Still Rule the Energy World

By 2050, there will be more than 10 billion energy consumers. If nuclear power is to supply even 10% of our carbon-free energy, the world would have to build more than 50 large nuclear power plants a year. Currently, five a year are being built.

Our primary energy source for the rest of our lifetimes will be the same one that has dominated for the past 150 years: oil and gas.

Despite all the naysayers and finger-waggers, that’s not an insurmountable problem. The world’s deep-water oil and natural gas reserves are significantly larger than was thought just a decade ago. And higher oil prices have spurred the development of technologies for extracting them.

That means the cost of developing Canada’s oil sands, for example, are quickly declining. Projects that weren’t viable last year now are, with oil at $77 a barrel.

As for natural gas, U.S. known reserves – including the Marcellus Shale, – which contains more natural gas than the North Field in Qatar, the largest field ever discovered – exceed 100 years of supply at the current rate of consumption. And those reserves are sure to become larger.

Two Huge Commodities… And One Investment That Capitalizes on Both

Let other speculators chase the high-risk venture capital investments in alternative energy sources. Oil and gas are here to stay. Bank on it.

Or better yet, pick up a few shares of iShares Dow Jones US Oil & Gas Exploration Index (NYSE: IEO). Here are three reasons why you should…

• It’s well-diversified, holding Anadarko Petroleum (NYSE: APC), Apache (NYSE: APA), Chesapeake Energy (NYSE: CHK), Devon Energy (NYSE: DVN), Noble (NYSE: NE), Occidental Petroleum (NYSE: OXY), Valero (NYSE: VLO) and many others.
• It’s liquid.
• Costs are low – annual expenses are less than half of one percent.

Good investing,

Alexander Green