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Did You Buy the Wrong FANG?

Written by Keith Kohl
Posted May 4, 2022

Call it a very unfortunate case of being misheard.

Just around nine months ago, we talked about why 2022 was shaping up to be a bullish year. I even offered my top oil stock.

You know the one. It’s the must-own company sitting in your portfolio that was ready to blossom. 

Maybe it’s a stock that had its ups and downs in a weak market price environment. 

Perhaps a buying opportunity opened up that you couldn’t ignore. You certainly don’t sell it when the market is weak.

After all, the goal is to buy low and sell high, isn’t it? Instead, you hold on to your convictions that the market is ripe for a roaring comeback. 

Well, we talked about that stock, and for me it was FANG.

Whenever someone asked what my favorite stock was for 2022, I’d immediately say FANG. 

You and I both knew that oil was ripe for a comeback at the time, with WTI trying to break above $70 per barrel. 

FANG, FANG, FANG. 

I’d repeat it to anyone who asked. 

So imagine my surprise when I bumped into a disgruntled friend who heard it and then dove into stocks like Amazon, Netflix, and Google. 

At first glance, that couldn’t have been too big of a mistake… could it?

I mean, we’re talking about THE LARGEST tech players on the planet.

Surely they can’t be a bad investment. 

Unfortunately, it was the wrong FANG. So, you can probably guess how this story played out.

And to be clear, Diamondback Energy won the FANG showdown. 

It wasn’t even close.

Take a look for yourself: 

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Even if you were late to this party, you still would’ve come out on top.

The only question now is when do I start harvesting my oil profits?

Well, not just yet.

We’re about to experience another bullish surge in oil prices, which have been consolidating just north of $100 per barrel. All the market needs is a jolt in consumption. 

That’s precisely what’s about to happen as we enter the summer driving season. I’ll note that this will be the first real summer driving season since 2019. 

However, we both know that the real push will be shouldered by China. The most recent round of strict lockdowns in China has helped keep a lid on crude prices. If China is successful and fully reopens within the next few months, economic activity will spur oil prices higher. 

Yesterday, Germany announced it would support an EU oil embargo on Russia. Keep in mind that this comes at a time when Russian oil output has fallen to about 10.3 million barrels per day — nearly a million barrels per day less than it was in March. 

No, dear reader, these oil profits are about to grow riper. 

Until next time,

Keith Kohl Signature

Keith Kohl

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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.

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