Commodities Are Crashing Like It's 2008 All Over Again

Eighteen of the 22 components in the Bloomberg Commodity Index have dropped at least 20 percent from recent closing highs, meeting the common definition of a bear market. That’s the same number as at the end of October 2008, when deepening financial turmoil sent global markets into a swoon. 

A stronger U.S. dollar and China’s cooling economy are adding to pressure on raw materials. Two of the index’s top three weightings -- gold and crude oil -- are in bear markets. The gauge itself has bounced off 13-year lows for the past month.

DYI Comments:  Vanguard's Energy Fund symbol VGENX from peak to trough is down approximately 40% creating an excellent time to purchase shares of a non-correlated fund to add balance to your basic stock and bond fund. Prices have been knockdown and fear of even lower prices are abound.  Dollar cost averaging is your friend to acquire a high quality portfolio at a low cost basis.  Don't let fear of cheaper prices chase you away.

Energizing A Portfolio With Low-Cost Oil & Gas Funds

The Vanguard Energy Fund Investor Shares (MUTF: VGENX) consists mainly of large-cap growth and large-cap value stocks from the energy sector, with an emphasis on North America. Top holdings should come as no surprise, with the following as the most heavily weighted positions:

• Exxon Mobil Corporation (NYSE: XOM)
• Chevron Corporation (NYSE: CVX)
• Royal Dutch Shell plc (ADR) (NYSE: RDS-A)
• Schlumberger Limited. (NYSE: SLB)
• Pioneer Natural Resources (NYSE: PXD)

The fund's expense ratio is 0.30 percent, which is low for an actively managed fund.

DYI