How President Biden Is Single-Handedly Saving the Oil Industry
Sometimes an investment idea is so antithetical to logic that you can't help but laugh at its truth.
More often than not, those are the most powerful ideas that pad your portfolio for years to come.
You've seen plenty of examples firsthand.
Let's take one of the more contentious debates out there: gun control.
No matter which side of the fence you fall on regarding control, the cold, bitter truth is that gun investors love gun control. That may not make sense at first, especially considering the extent to which pro-gun advocates revere their Second Amendment rights.
And there was nobody they loved more than President Obama.
I know you might think that's impossible.
We're talking about a president who passed a series of executive orders on gun restriction. He tightened loopholes, improved the tracking of lost or stolen guns, and pushed for firearm safety.
You would think the gun crowd hates him with every fiber of their being.
Spoiler alert: They do.
It didn't matter that in reality, President Obama's gun control measures were fairly weak. The major pieces of gun control legislation, such as magazine sizes and banning gun sales to buyers on terrorism watch lists, failed to pass through Congress during his administration.
Still, President Obama was a symbol for tougher gun control.
And that, dear reader, is why gun investors are forever indebted to him for lining their pockets with cold, hard cash.
Here's why...
Look, if you had bought a position in Sturm, Ruger & Company (NYSE: RGR) on January 20, 2009 - the day President Obama took office - you could have picked up your shares for around $4.24 apiece.
All you had to do was hold onto those shares until President Obama left office eight years later, and this is how that stock would have performed for you:
You would have walked away from that trade with a 934% winner under your belt.
All you had to do was understand the immense fear that permeated the market over President Obama enacting extreme gun control measures.
Of course, had you held onto that position until the day President Biden took office, your initial investment would have swelled by more than 1,550%!
Unfortunately, President Biden doesn't instill the same fear over gun control that President Obama did.
Don't worry - he'll do us one better.
Take a look around at the hot-button issues right now.
It turns out that President Biden is taking a big whack at one today.
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Biden's Dirty Energy Profits
Earlier today, the president doubled down on his commitment to combat climate change.
In fact, he's directed his administration to center the climate crisis in U.S. foreign and national security considerations.
Along with a host of new executive orders, he's directing the Secretary of the Interior to pause on entering into new oil and natural gas leases on public lands or offshore waters and to launch a rigorous review of all existing leasing and permitting practices related to fossil fuel development.
I know what you're thinking - that's terrible news for your oil stocks.
But there's a catch here.
Biden's not destroying the U.S. oil industry... He's saving it!
Don't get me wrong - the Biden administration is going to mint new millionaires from a booming renewable energy sector.
We've been riding that green wave and will continue to do so for decades to come.
But today I wanted to highlight that the most unlikely winner during the Biden administration may turn out to be the oil and gas industry.
Keep in mind, investors have been plagued by bearish fundamentals in the oil sector, which were exacerbated by the demand destruction caused by the COVID-19 lockdowns.
Had oil prices turned negative any other year, it would've been historic news.
In 2020, the story lasted maybe a week, if that.
Well, it turns out the cure for low oil prices isn't just low oil prices anymore.
And the roaring comeback the oil sector is about to make under President Biden will have the investment herd scratching their heads until the day he leaves office.
Stay tuned.
Until next time, Keith Kohl A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations - all ahead of the mainstream media. For more on Keith, go to his editor's page.
@KeithKohl1 on Twitter