A Market Crash Worth Millions to Investors

The fear in the market is palpable. 

But you already knew that, didn’t you? Unless this is the first thing you’ve read online in the last four days since the market dropped sharply last Friday, then you’ve seen the same panic-driven selling that I have. 

If it hasn’t happened to you yet, be prepared for the flood of Rothschild quotes about buying when there’s blood in the streets to fill your newsfeed — and for good reason, too. 

Recession fears have peaked over the last few days, stemming from a poor jobs report last Friday that showed both a jump in unemployment and an underwhelming amount of jobs added to non-farm payrolls. 

But is this the apocalypse? Was Friday’s crimson tide in the market the proverbial straw that broke the camel’s back?

Well, I’m not convinced.

Let’s be clear: It’s ugly out there. 

Investors are terrified right now, and yet I don’t think I’ve ever been this bullish on the oil sector before. 

Well, that might not be true, with the exception being the brief moment in 2020 when oil prices went negative and people were paying YOU to take their crude; that will forever remain the most powerful moment in my lifetime to buy oil stocks.

I’ll be the first to admit that things aren’t THAT bad. The S&P 500 is only off around 9% from the all-time high it set a few weeks ago. Again, it’s bad… But is this the end of everything? 

Right on cue, the investment herd is acting as if they’ve never witnessed a correction before. And more importantly, the same herd is getting frightened out of the market. 

Last week, I told you that oil was a screaming buy. I usually pound the table when I see a disconnect between the market and reality — particularly in the oil sector — and the bloody mess that has spilled from our portfolios has me seeing huge upside ahead. 

Here’s why…

The demand delusions that have permeated into the oil markets have been scary to watch.

This feeling didn’t spring up overnight, mind you. 

For years, we’ve watched major demand forecasts get it wrong, perhaps none more egregious than when the EIA told us U.S. oil demand in the summer of 2022 was lower than it had been during 2020, when Americans were locked down and nobody was on the roads. 

Not surprisingly, the EIA was forced to go back and say they were wrong and demand was actually strong. 

They weren’t the only ones terrible at projecting demand growth. In August 2022, the International Energy Agency was projecting that global demand would climb to 99.7 million barrels per day in 2023 and finally surpass pre-COVID levels at 101.8 million barrels per day in 2024. 

One year after making that prediction, the IEA reported that world demand reached an all-time high of 103 million barrels per day in June 2023!

Today, it’s the same old song and dance. 

For months, we’ve been told by the EIA that demand was slowing, that there wasn’t much umph in our crude consumption, and that gasoline demand was tepid at best — a narrative we saw clean through. 

So again, imagine our surprise when the EIA came out recently and revised their demand numbers. It turns out that our petroleum demand hit a new record and our thirst for gasoline was far higher than first thought. 

In May, U.S. petroleum demand hit 20.8 million barrels per day and gasoline demand hit a post-pandemic high of 9.4 million barrels per day. 

So much for getting that one right. 

Then we have the supply-side issues we saw coming from a mile away — U.S. domestic production fell to around 13.1 million barrels per day. But this was inevitable given the fact the number of rigs out in the field has been declining for years. 

With the supply/demand fundamentals growing tighter, we’re setting ourselves up for a strong finish for oil in 2024. 

When the rest of the herd catches on, you’ll understand the significance of today’s buying opportunity. 

Next time, we’re going to look at where you’ll find the best oversold oil stocks in the sector. 

Until next time,

Keith Kohl

Check us out on YouTube!

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.