Hi Gang,

I just read an article in Money Mag.  I understand that much in the investment mags is just porn and garbage and read it anyway to see whats being said.  I try to discern between the porn and sound info in these mags as a learning experience and to test my knowledge.  I usually find "some" good info each time I read them.

The following struck a chord with me and, IMO, is sound advice on PRNEX.

excerpt from "The best ways to protect your Money Today" by George Mannes

 "......The fund has risks, of course.  It has gained nearly 30% a year for five years; if oil prices fall and inflation subsides, you could lose money buying in at this level.  So understand what you're getting with New Era: not a chance to win big but insurance against the risk that inflation will get worse.  If peace of mind is worth it to you, shift about 5% of your stock portfolio from other large-caps to the fund.  That's enough for insurance but not so much that your're betting your future on commodity stocks."

So before buying this fund one might ask themselves......

Why am I buying this fund?

- Am I performance chasing or market timing?

- Am I seeking an inflation hedge?

- Am I thinking long term or short term?

- Am I filling out my suitable well thought out allocation with a market that many feel should play an important role in ones portfolio?

For whatever reason, and anyones personal choice is fine by me, just know what you own and why you own it! 

I hope this helps others and welcome any comments.

Good Luck

Brian

 

 

 

One difference between NR and tech: With tech products it's relatively easy for competitors to make the same widgets, and drive prices down (e.g. all things computer-related). With NR, there's only so much of it, and it gets increasingly expensive to find/extract as it gets used up (and the global middle class increases).

Also, in the pre-2000 bubble tech companies without earnings were trading at huge prices. There may be a bubble now in oil for example, but I think most NR companies would have decent earnings even if commodity prices were lower.

At least this is what I tell myself to keep holding PRNEX.

 

 

hi im 18 and am about to go off to college, after researching this fund and the economy for most of yesterday i was thinking of starting my first mutual fund and investing in the T Rowe Price New Era for the long run.  would you recomend buying this mutual fund at this point in time?