As crude oil falls to a two month low of $61, the TSX composite is getting hammered. After closing at its highest level in five years on Monday at 11,081, the index slipped 120 points on Tuesday, 212 points yesterday and is down another 158 points today.

Energy stocks have been hit even harder. Encana (TSX: ECA) is down 15%, Petro-Canada (TSX: PCA) is down 11.3%, Suncor (TSX: SU) fell 14.2% and my portfolio holding in Canadian Natural Resources (TSX: CNQ) is down 12.6%.

The past few days once again illustrate the benefits of diversifying a portfolio. My energy exposure is only 6% of the portfolio, so the hit hasn’t been so bad.