As we head into Memorial Day weekend, let's talk about oil.
Two year's ago (this time of year), the national average price on gas was $1.87. Last year: $3.04. Today, it's $4.60.
Throughout much of the past two years, the "climate actioners" were convinced that oil demand was rapidly eroding, on the fantasy of a rapid change to a world of ubiquitous electric vehicles and wind farms. So, they underestimated demand, while simultaneously regulating away (oil) supply.
The result has been ceding control on oil prices, completely, to OPEC. And that guarantees higher and higher prices (no limit).
With that, as we've discussed in recent weeks, the energy price input on the cost of living, has become a primary headwind for demand.
Add that to a reset in mortgage rates and a haircut in equity valuations, and we have an economic slowdown that will lower the standard of living, but may contribute to avoiding an economic crash (as the slowdown provides some relief against more aggressive Fed monetary policy action).
With that, as we discussed yesterday, the bounce in stocks looks early, and set to continue.
How To Capitalize On This Bounce in Stocks
My Billionaire's Portfolio is the only service in the world that gives the average person an opportunity to invest alongside the world’s greatest hedge funds and billionaire investors, while learning the tools of the trade along the way. It's a concept I call "piggyback” investing.
Through the power of the internet, I get to share my insight and the moves of the best investors in the world, with investors of all levels. It gives me a chance to help empower the do-it-yourself investor.
My strategy is rooted in finding deep value stocks owned and controlled by billionaire investors.
The process is pretty simple. I follow the most powerful and influential investors into stocks where they control their own destiny. When they win. We win. These investors specialize in the concept of asymmetric returns–i.e. they only want to spend their time in situations where risk is defined, and the potential profit is multiples of what they pay for a stock.
But don't go out and blindly buy every stock a big-time investor buys.
I hand-select only my top 20 stocks to invest in, and to include in the Billionaire's Portfolio, all of which are owned and influenced by a big billionaire investor.
As a loyal Billionaire’s Pro Perspectives reader, I’d like to extend an invitation to join my premium advisory service.
It’s a great deal for the money. And I think you’ll find it extremely valuable as we step through what's becoming a more complicated investing environment. You can click here to subscribe.
When you do, you'll get immediate access to see our portfolio, including my most recent note, where I review the seven cheapest stocks in our portfolio.
Have a great weekend!