I too have big paper gains on energy positions most of which I acquired like SJT for a reasonable current yield not really expecting the kind of CG I've earned(on paper) the last year or so. While I would hate to lose the gains, my big problem is should I sell what do I do with the after tax proceeds(remember a lot of the profits would go to taxes-best case 20+% and worse case 40%). I would not touch Reits or long term bonds(because of a fear of rising interest rateseven with a weakening economy) and if you are getting out of energy because you think the economy is going to slow down then the equity market is no place to invest in. If all you are left with is money market type returns that's not very attractive. There is no question that if energy prices fall significantly SJT and other energy positions will decrease in market value but I think SJT distributions will still be at a relatively attractive level. In addition, while OPEC has proven that it can not increase supplies sufficiently to prevent substantial increases in energy prices, I know for certain that they can reduce supplies to keep prices at what would historically be considered a very high level(high $40's at least). Now that they know the world economy can clearly sustain prices at that level if not higher why do you think prices will drop lower? (Remember they've only been above $50 for a very short time). I'd love to hear some other suggestions but for now I'm going to continue to hold my positions. I'd appreciate hearing any down side protection methods others are using(I looked into puts on energy put they were too expensive to be a serious option).