Energy Space Still Has Value

"We are almost past the 12- to 15-month self-correction phase," says Rice. "And once that happens, the cloud lifts off the stocks and the sector does very well. The bottom line is, always have part of this as part of you portfolio, about 10% to 15%. The upward trend is still there, but you have to be longer-term oriented. It may underperform for 12 to 15 months, but don't time the market, just allocate a certain amount."

Rice likes Consol Energy(CNX Quote), a Pittsburgh-based provider of services to the electric power generation industry, and Massey Energy(MEE Quote), a Richmond, Va.-based producer and processor of coal. He said he just halved his holdings of Transocean(RIG Quote), the Houston provider of offshore contract drilling services, and its cross-town rival, Diamond Offshore(DO Quote).

Oppenheimer Commodity Strategy Total Return Fund

(QRAAX Quote)The Oppenheimer Commodity Strategy Total Return Fund (QRAAX) doesn't hold stocks, but buys structured notes linked to the Goldman Sachs Commodity Index. It also uses other derivatives, such as futures and options. The fund returned a negative 13% last year, and so far this year, as of May, it's up 3.4%. Morningstar gives it one star.

Fund manager Kevin Baum said every dollar in the fund is invested in commodity prices themselves. He says his fund offers investors a way to get direct exposure to commodities, which will provide a negative correlation to equities and bonds.

The fund holds a strategic allocation of commodities, but never any equities. Energy is the dominant commodity in the market, in the way it impacts the economy. The fund doesn't offer exposure to coal or solar power or a variety of other energy sources.