The energy debate rages on as oil and gas futures bounce around with 30% corrections. Which side of the energy debate are you on? Bears say that oil and gas prices are coming back down to earth. Speculators and hedge funds bid them up, global demand is slowing and alternative forms of energy will soon replace the fossil fuels we've come to depend upon. Bulls argue that oil and gas supplies are dwindling at the same time that the emerging market economies (China, India, Brazil and 20 others) need more. As their middle class population builds they too will want cars, air conditioning and electricity and demand will increase. Most oil reserves are in countries with unstable governments and when geopolitical events get ugly, prices tend to skyrocket.

I'm a long term energy bull -- 10% of my money has been in energy stocks for the last several years and today I maintain that allocation for two reasons. First, I believe in five years, oil and gas prices will be higher than they are today. Second, owning energy is a great hedge against other asset classes like stocks, the US dollar, and inflation.

No one knows which way energy prices will go next week or month so I continually rebalance my portfolio. As my energy stocks rise, I trim them and when they fall, I add to them. If my portfolio goes to 12% energy, I sell them back down to 10% and vice versa.

Now comes the easiest part – which stocks do I pick? Easy you say? Yes – because I don't worry about stock picking due to a miraculous new invention I'll discuss below. I own three energy stocks: the U.S. Oil & Gas Exploration & Production Index (NYSE:IEO), the U.S. Oil Equipment & Services Index (NYSE:IEZ), and S&P Global Energy (NYSE:IXC). Through these three stocks, I own about 200 energy stocks in precise allocation percentages to parts of the energy sector, weighted according to my own preferences – 60% is in IEO, 30% is in IEZ and 10% is in IXC. Why pick stocks when I can own them all? Here's what I mean.

"The asset boom continues," say Mary Anne and Pamela Aden in The Aden Forecast. "All of the pieces have fallen into place. Following the Fed's move to lower interest rates, a recession is now less likely than it was a month ago, while inflation is now more likely.

"There is really every reason why oil should stay strong. Tensions in the Middle East with the threat of possible supply disruptions alone will keep pressure on the oil price. Then we still have the chance for hurricanes threatening the Gulf of Mexico's platforms, refineries, and pipelines.

"The reason this is so sensitive is because the world is dependent on oil and this demand is growing by leaps. As our good friend Doug Casey notes, The International Energy Agency reported that they see an oil supply crunch within five years that will force up prices to record levels and increase the West's dependence on the OPEC cartel.

"This is a very real possibility and in spite of temporary dips as we saw with the credit crunch, high oil is here to stay. Our first technical target has been $90, with a further move to $100 after that.

For new energy positions, the Aden sisters recommend Schlumberger Ltd. (NYSE: SLB), Diamond Offshore Drilling Inc. (NYSE: DO), and Transocean Inc. (NYSE: RIG). For investors who want a diversified portfolio of energy holdings, they recommend the Energy Select SPDR (AMEX: XLE) and the iShares S&P Global Energy Fund (NYSE: IXC).

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment commentary and favorite stocks of the nation's leading financial newsletter advisors.