Inflation Outlook for 2022: $4 Gas and $70k Cars

Gas could be $4 by Memorial Day 2022. 

That was the idea behind a story CNN ran recently. Tech company Gas Buddy said as much, citing increasing demand and still-tight supply after cuts in 2020.

It’s just another chapter in the ongoing, pessimistic tale that things are going to get worse before they get better. 

Look at the car shortage. Dealer lots remain empty, used cars sell for what a new car would have cost just two years ago, and new cars that retail for $50,000 can command $70,000. 

It’s all the ugly reality of the inflationary environment that we’re going to be stuck with for at least the next year. 

And while consumer confidence has somewhat improved over the past month, people are still having to dig deeper to find the money for staples, utilities, and everything else you can think of. 

Having to pay more money for the same thing is never ideal, but it’s not a reality anyone can escape. 

While the wheels of the Fed move slowly to try and bring some relief, there are things investors can do to take advantage of the situation and earn the kind of money that makes an inflated environment easier to deal with. 

But the opportunity doesn’t lie with the kinds of things most people interact with every day that, to them, represent the state of the economy. 

Instead, investors are looking at trends that will dictate not just the next year but the next decade as emerging sectors come to the forefront of the 21st-century economy. 

Those cars that are so hard to get now? One reason is that they’re more sophisticated than ever. Manufacturers can’t get enough computer chips to build the cars and meet demand.

The utilities that are going up in price? The price of oil doubled last year and natural gas went up even more. 

All of these things have a common thread. 

They’re trends driven by the increasing scarcity of and the rising prices for commodities.

Advances in technology and energy generation — whether from gas or a battery —  rely on resources that need to be pulled out of the ground. 

And demand is simply outpacing supply. 

Throw in the fact that many of these commodities are largely found in China. That nation's relationship with much of the rest of the world is strained in the best of times. So you can see why countries all over are starting to take this more seriously. 

That creates an opportunity for investors who get in with the right companies in the commodities sector. 

There are small, little-known firms working right now to bring to market the kinds of hard assets the world is going to need in increasing numbers over the next few decades. 

They’re sitting on deposits all over the world. The trends are going to have nations turning to them for these metals to lessen reliance on China. The role these companies play is only going to grow as demand grows, and now is the perfect time to get in as an investor. 
 
It’s a once-in-a-generation investment opportunity. 

And the earlier you get in, the better the gains will be. 

You can learn all of the details in this new video and see why this sector is going to thrive no matter what happens with the economy

Keep your eyes open,

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Ryan Stancil
Editor, Daily Profit Cycle