Ok, I'm a total Noob when it comes to creative hedging ala atticus and probably others here, but I know a lot about asset allocation and if I'm you, here's what I would do.....
I would allocate my investable portfolio, along with any new monies that you are receiving during the oil boom you're experiencing the following way:
10%- VISVX (Vanguard's Small Cap Value mutual fund). This has the purpose of capturing gains during a prosperous stock market such as we have had for the last 4 years.
10%- Physical Gold (or possibly an ETF such as GLD, or SGOL). This has the purpose of hedging for hyper-inflation or a currency debasement but of course you already have a lot of inflation hedge already built into your business. This will do well during a negative real interest rate environment.
35%- PTTRX (Pimco's Total Return bond fund). Purpose of providing a reasonably stable, defensive allocation, yet still gives you a decent return. Look at a chart of this fund
35%- BTTRX (American Century Zero Coupon Treasury fund) Great for extreme deflation, or market crash, which is likely to happen if crude plummets.
The remaining 10% of new monies you have to invest each month, could be used to hedge crude outright with cheap puts that would provide a big return if you experience a huge price decline.
If we get into some serious inflation (meaning you're making a killing from your business, then I would definitely re-allocate some money into very short term bonds or TIP's in case the Fed is forced to raise rates, in which case most things will do poorly except for cash and cash equivalent, but I' don't see much likelihood of that happening any time soon (ala Volcker in the early 80's).
