Are you taking advantage of one of the most lucrative tax breaks there is?
To use this tax break, you don’t need a seven-figure bank account or friends in high places…
It’s one of the few incentives that can go to anyone and everyone over 16 years of age with no penalty.
The only thing you really need is a driver’s license and a gas- or diesel-powered car, and you, too, can take advantage of this lucrative break.
Let me explain…
Oil Stimulus Money
According to AAA, retail gasoline prices this week averaged $2.477.
That’s the first time gasoline has been under $2.50 since 2009. By January, it could be as low as $2.25 for a gallon of regular.
This comes at a time of the year when middle-class Americans and paycheck-to-paycheck consumers need an extra bit of cash for Christmas gifts or travel expenses so they can see friends and family.
Thankfully, what some are calling the “oil stimulus” has given them just that.
And that little bit of extra cash has allowed millions of people to spend more and stimulate the economy… something investors have seen in the last couple months.
AAA also said that 98.6 million Americans will travel 50 miles or more during the holiday season, and most of them will be driving.
For those who are flying, the cost of jet fuel is at record lows, too, offering a huge stimulus to airlines whose biggest expense is fuel.
Check out how well Southwest Airlines (NYSE: LUV) has done while oil and gas were getting crushed…
Of course, this immediate stimulus for airlines may not be passed onto customers, but shareholders have already seen the boon of low oil prices.
That being said, this hasn’t been a positive stimulus for everybody…
OPEC Loses Half of its Revenue
You and I both know that oil and other commodities have been hit hard by the oil glut and low prices.
But what you may not know — given all of the misinformation out there — is that OPEC is in trouble, too.
Many blogs and articles written about oil since the November 27th OPEC meeting have claimed that Saudi Arabia and Kuwait are orchestrating some ingenious chess match to save market share…
When really, they’re fighting to stay afloat by tossing their heavier friends off the ship.
Take a look at these two graphs from the EIA.
This first one shows how far and fast OPEC’s own revenue is declining…
The EIA projects revenue for 2014 will be around $700 billion, an 8% drop from 2013. That doesn’t sound that bad…
But at current prices, the cartel stands to lose nearly $400 billion in annual revenue by 2015. That’s a 50% drop from 2013 levels that could seriously threaten some of the OPEC members that rely on revenue to fund social programs.
The second chart shows the countries being tossed off of the OPEC ship…
Saudi Arabia, Kuwait, and Iraq hold half of OPEC’s revenue hostage, and when countries like Venezuela and Angola can’t keep up with cheap oil prices, it’s only a matter of time before the cartel has another choice to make….
Either cut production or watch its partners sink.
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So What’s Going to Happen?
All of this about OPEC losing half of its revenue in two years and Russia’s ruble crashing on low oil prices doesn’t mean we know what will happen with oil.
As much as we’d like to, it’s impossible to predict how the market will move.
But all common sense points to higher oil prices by the end of next June. And if that’s the case, we can safely assume that most oil and gas stocks are a great bargain right now.
This is especially true in North America, where fears of a shale bust have investors fleeing fracking stocks with reckless abandon.
But selling and running away when these stocks are trading at their lowest level in five years is absurd. If you would’ve bought stocks as cheap as they were in 2009 and held onto them, you would’ve made a bundle.
So why are people fleeing now? Are they in a panic?
It seems so. I mean, oil isn’t going away no matter how low prices go. Companies will always be there to drill for it so long as there’s demand.
That means when prices go low, it’s time to buy stocks. And this time, we’re buying North American.
Here are three stocks I’ve found that are trading well below market value.
I suggest you buy them, hold them, and wait for the price to shoot up again.
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.
