As I was building my retirement portfolio in late 2007, I came across a Roger Gibson article on asset allocation which suggested the use of the 'commodity' asset class. I did not know how to get that exposure for my portfolio. My financial advisor pointed me toward 'iShares S&P GSCI Commodity-Indexed Trust’ and also the ‘PIMCO Commodity RealRet Strategy’ fund. I bought small positions (a total of about 7%) of my portfolio.  I also own small stakes (less than 5%) in the T. Rowe Price New Era and CGM Focus funds which concentrate on energy and materials.

I am pleased with the overall performance of my portfolio and my energy positions have helped keep my portfolio in the black in 2008.

But I fear that my energy investments are contributing in some way, to the speculation and the volatility in energy markets. 

I wonder if these new vehicles like ETFs and the derivatives used by Pimco, allow amateur private investors such as myself to innocently drive the price oil over $145 a barrel?

I would appreciate the thoughts and opinions of some of you with more investing experience than me.

Mike