July 6, 2022
So, I’ll admit from the beginning that I’m one of the lucky ones.
Not only do I live in a state where gas prices are some of the lowest in the country...
But I also get free fried chicken with every fill up.
While hot, muggy Virginia isn’t always the most comfortable place to be during the early summer, I’m happy to say that we occasionally get a few things right.
I still have friends from other states who hear about this tradition, and then exclaim in disbelief: “Wait, you get free fried chicken every time you buy gas!?”
To which I reply: “Wait, you don’t!?"
I personally don’t know any better way to nurse away the pain at the pump than with some hand-breaded drumsticks.
But it seems most people don’t live near gas stations that still chop wedge fries by hand or mix up fresh batches of biscuits.
I can’t help you there!
But I can at least provide you with some valuable reasons why gas prices — as high as they may be — don’t have to ruin your day.
In fact, if you play the situation correctly, high gas prices could drive some of the biggest stock returns you’ll see this year.
But the unexpected secret to making gains during this petrol crisis is to keep your money as far from the pump as possible...
And that includes avoiding oil companies.
Yes, it’s true that they’ve climbed across the board.
And that major companies like ExxonMobil (NYSE: XOM) have continued to haul in fat profits.
But fuel companies are coming dangerously close to the end of their bull cycle — there likely isn’t much left in the tank.
And never forget that the uncertainty of global events continues to have a disproportionate effect on oil — this could wreck returns if things go bad.
And oil has also attracted new enemies...
President Biden, for one, has appointed himself the watchdog over excess gas profits.
He’s repeatedly taken direct aim at several companies now.
And he’s not afraid to say that his mission is to claw back some of the billions oil companies have made off the barrel price and crack spreads.
While he’s not likely to be very successful, it’s one of many compounding market woes that makes new gas investments a risky idea.
Consumer behavior has also started to shift dramatically:
- Road trips are being canceled by the thousands
- Work-from-home is eliminating commutes by the millions
- And according to a recent Bloomberg article, ridership on public transportation is seeing a giant increase.
In short, soaring gas prices are scaring consumers into entirely different buying decisions.
And the biggest shift of all?
The increase in the move to electric vehicles.
Even with supply chain and manufacturing delays, EV sales were up 60% in Q2 of this year.
That means a record-breaking number of Americans are ditching gas and making the move to electrics as fast as they can.
EVs take away the hurt of paying for fuel — charging an electric vehicle feels “free” compared to what you’d have to pay for gas.
It’s important to remember that consumers don’t buy the fuel that runs power plants.
That’s done by large utility companies.
EV owners get to enjoy the resulting electricity with a small bill that feels very different from the weekly trip to the gas station.
This also means that the soaring price of fuel won’t spook potential buyers, regardless of how high it goes.
So far price shocks in uranium haven’t translated to less electricity usage.
(Usage even continues to hit new highs.)
With millions of new EVs now in production, these numbers are going to continue to grow.
So don’t buy oil...
Buy uranium instead.
The EV revolution has ignited a boom cycle for this emission-free electric fuel — with no end in sight.
Uranium is going to lead energy stocks in 2022.
And our resident uranium mining expert, Gerardo Del Real, is ready.
He’s found a uranium miner that’s amassed an industry leading pipeline of exploration and development-stage projects across Texas, New Mexico, Wyoming, Utah, and Arizona…
With combined resources of nearly 100 million pounds of all-American uranium.
Gerardo says this company is how best to invest in energy.
He’ll show you why expensive gas is pushing uranium prices even higher—and creating a windfall for investors.
Don’t be the one who’s left starving at the gas pump.
Editor, Daily Profit Cycle