The way to play oil stocks now

Earnings could fall dramatically if rising prices lead to reduced demand — here’s a way to cope.

NEW YORK (Fortune) – Americans may not be happy about spending $40 for a tank of gasoline, but they’re coping.

Problem is, just as we’re adapting to one energy shock, another is lurking in our boilers and furnaces. The price of natural gas has doubled since June, rising from $6 to $13 per million BTUs.
In northern climes many homeowners could see a $100 increase in their monthly heating bills. The implications for investors will be profound — and not just for energy stock aficionados.

“It’s the single biggest issue out there for the stock market, yet most investors have their heads in the sand,” says Wendell Perkins, manager of the JohnsonFamily Large Cap Value fund. “We’re talking about $100 a month families won’t be spending at malls, movie theaters, and restaurants.”

Fortune