Yesterday, the Dow Jones gave up all its beneficial properties for 2023…
Rates of interest are hovering … the 10-year Treasury yields are at their highest degree since 2007.
And the 10-year actual fee, which takes under consideration inflation, is at its highest in 14 years!
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The Prime Price — the speed used as a reference level for pricing some loans comparable to mortgages, private and small enterprise loans — is the best it’s been in 23 years!
Many shoppers who’ve loans tied to the prime fee are actually going to be coming into right into a world of ache.
Rising charges should not an excellent backdrop for shares.
I do know it seems to be type of bleak for the market however that’s not the case on this market…
Crude oil.
In truth, crude is within the early phases of a bull market.
It’s up near 30% because the finish of June and it’s simply getting began.
And simply the opposite day the Strategic Petroleum Reserve, which is the USA’ piggy financial institution of oil for a wet day, solely has a 17-day provide.
It’s dropped from the historic common of greater than a 30-day provide.
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Right here’s why that’s very bullish for crude…
The SPR has a capability to carry greater than 700 million barrels of oil.
Proper now, there are solely 350 million barrels in storage — a 50% drop.
Ultimately, the USA goes to must fill the SPR again up.
Backside line … they might want to buy greater than 300 million barrels…
That could be a big quantity of pent-up demand that can drive oil costs, some analysts say, nicely north of $150 a barrel in a rush.
If that wasn’t sufficient purpose for larger crude costs … wait, there’s extra…
- Low provide: Cuts by Saudi Arabia and Russia have decreased world oil move. OPEC tasks an enormous day by day deficit of oil as we head into 2024.
- Excessive demand: Outpacing the availability. Demand around the globe continues to extend as growing international locations modernize.
- Winter is coming: Peak winter months imply plenty of chilly days and extra fossil gasoline to maintain your property heat.
The oil benchmark, U.S. West Texas Intermediate crude, is already shifting larger … from a low of $67 per barrel in June, to almost $95 per barrel just some days in the past.
And the Biden administration is doubling down on “clear power.”
The brand new power plan will end in “the fewest oil and fuel lease gross sales in [U.S.] historical past.”
That is only the start.
Over the previous yr or so I’ve been researching the power markets.
What I discovered turned me from a inexperienced power Tesla driver to creating a full 180-degree flip.
Only a few months in the past, I reached out to an actual professional within the power business…
Josh Younger, founder and CEO of Bison Investments, a hedge fund which soared 349% in 2021.
Josh has oil operating by his veins.
We talked concerning the internal workings of the business, the supply-demand story, Chinese language oil consumption and when, not if, oil will probably be heading larger.
In the event you don’t have a place in crude oil, it’s not too late.
And I extremely counsel you pay attention to our dialog right here:
(Click on right here to observe it now.)
Regards,
Charles Mizrahi
Founder, Alpha Investor
P.S. I not too long ago gave a presentation on a little-known oil firm. It’s doing all the pieces proper.
It has lots of of thousands and thousands of barrels in oil reserves. Tens of millions of acres of land it could drill on. Tons of of thousands and thousands of {dollars} in free money move. And 0 financial institution debt.
