Putting Katrina in Perspective

A few weeks ago, all we did was complain about soaring gas prices. Then Katrina hit and we realized that there are far bigger issues than the fact that it costs an extra $10 to fill up.

So while you may be thinking things are out of control, just put everything in perspective. Oil prices are still cheaper then they were 25 years ago ($94 adjusted for inflation), and you probably still have a house to go home to at night.

Granted, the financial markets are facing a tumultuous short-term outlook. The Gulf of Mexico accounts for a big chunk of the nation's oil and natural gas production, and without it, people are already suggesting the "r-word" (recession) by year-end.

So it's understandable if you're a bit nervous. Presumably, though, you have a long-term portfolio that was built to weather these unsettling times. But with energy stocks soaring and reconstruction of the Gulf States still ahead, there may be some ways to tweak your portfolio.

But please keep in mind, if your portfolio is not out of whack, then don't mess with it. Don't go chasing returns just because the media says you should. Trust your portfolio and leave it alone.

It's Not Just Gas

While we automatically associate the high price of oil with the local gas station, many other industries are feeling the pain.

To start, winter is coming, and many of us will be shocked at how high our heating bills get his year, says Herb Daroff, a certified financial planner at Baystate Financial Services in Boston.

Then there are delivery companies, such as FedEx( FDX Quote), that will suffer because they need fuel to survive. Same goes for the airlines, which were facing intense pressure even before Katrina hit. Even your cab drivers are feeling the pain, so don't be surprised if their fares increase.