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Your Money with Chuck Jaffe

June 3, 2008, 8:26 a.m. EDT

Oil and energy sector funds are a bad buy for most investors now

Money manager Steve Goldberg says that investors have enough exposure to energy and oil stocks in their ordinary mutual funds that they need to avoid energy sector funds, worrying about how any type of oil bubble will hit their portfolio if they continue gorging on energy. In a radio interview, Goldberg - a former Kiplinger's Personal Finance editor - said he believes the long-term price of oil is going up, and that many large-cap growth managers feel the same way; when an investor adds an energy fund to the mix, the resulting overlap leaves too large a chunk of assets in the sector, which makes the portfolio vulnerable to any downturn.

Link to MarketWatch's Slice.