Oil and Gas: Where to Profit in a Down Market

It hasn’t been a good week to be in the markets. 

Honestly, it hasn’t been a good month. 

The Dow Jones Industrial Average had been on a downward slide for the entire month of September. Just when it looked like it was going to recover somewhat toward the end of the month…. Those gains quickly went away and the slump continued. 

A lot of it had to do with issues we’ve been dealing with all year, things like supply chain woes and worries about inflation. Then there’s the frequent fight about the debt ceiling. Some even feared a contagion brought on by the Evergrande debt crisis in China. 

In all, the month-long trend in declines is one of the worst in 20 years. Just about every sector you can name was affected and investors have been left wondering just where they can grow their money.

It’s not an easy thing to figure out because of how volatile markets have been lately. It seems like many consumer companies — think Proctor & Gamble or Unilever — have had to give up much of what they’ve gained since January, leaving investors looking for anything that can provide better stability. 

Finding Stable Profits in the Energy Sector

One area set to provide that stability over the next few months, at the very least, is the energy sector. 

It’s one of the few that had a good month. Prices for commodities like natural gas and fertilizer have gone up for a variety of reasons, including inflation and supply issues.

This has all created the kind of environment that’s perfect for rising prices, and consumers are going to be seeing that over the coming months when heating bills are higher than they were this time last year. 

This will benefit the usual companies. Think oil and natural gas… even coal and uranium. 

Most of the world relies on the companies involved in these commodities and will pay for their services no matter what. Just in this past month, the sector has continued to show that it can resist market downturns better than most others. Energy stocks in the S&P 500 only experienced a 1.2% decline and the sector itself has shown a 25% gain this year. 

So, again, oil and gas are two bright spots in a dim market.

As investors look for a place to park their money, they’ll be drawn to the energy sector, and likely those two mainstays in particular. 

But there are other options if you know where to look. 

One, in particular, is a company set to take off because of the way it generates power. It does away with the old model of centralized power generation and instead allows utility customers to generate and distribute power themselves. 

It uses all kinds of power generation sources to get this done: fossil fuels, renewables, nuclear power, you name it. 

It’s a little-known technology provided by an obscure company, but the company is set to become a household name as demand climbs and governments focus on getting away from fossil fuels. 

You can learn all the details here to get it on it now before the mainstream does. 

Energy demand is only going to go up, so is the price. 

By getting in on this energy play, you can profit from one of the few sectors set to thrive in a volatile market. 

Keep your eyes open,

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Ryan Stancil
Editor, Daily Profit Cycle