Best Contrarian Buy of the Decade

Oil remains the lifeblood of the global economy. However, oil prices rise and fall with the economy. For decades, high oil prices preceded economic recessions and low oil prices drove rebounds. Oil remains the lifeblood of the global economy. However, oil prices rise and fall with the economy. For decades, high oil prices preceded economic recessions and low oil prices drove rebounds. [Wealth Daily logo] Best Contrarian Buy of the Decade By Christian DeHaemer Written Sep 07, 2020 Oil remains the lifeblood of the global economy. The world consumes over 100 million barrels a day. On a yearly basis it consumes 1.134 trillion gallons, or about half the amount of water in Lake Michigan. Oil companies are crucial because they provide fuel for transportation, power, and plastics. Investing in oil can be highly profitable — I’ve made some of my fastest and largest percentage gains off small oil exploration companies that hit the mother lode, including 780% from Petro Matad and over 400% from Dragon Oil. However, oil prices rise and fall with the economy. For decades, high oil prices preceded economic recessions and low oil prices drove rebounds. It is an old Wall Street adage that the solution to high oil prices is high oil prices. When oil is $100 a barrel, money gets put into exploration and extraction. Furthermore, people don’t drive as much or look to other forms of energy and thus reduce demand. The upshot is capitalism at its best. More supply and lower demand drive oil prices lower. The opposite is also true. Low oil prices lead to the destruction of companies and a slowdown in exploration. [CDC Backs New COVID Technology (20-cent stock to soar)]( The CDC just greenlighted an anti-COVID technology for reopening schools and businesses. Dr. Fauci says it merits “serious consideration.” He even uses it himself. Tech giants Apple, Microsoft, and Facebook are investing $3 billion. But they don’t own this technology. One tiny tech stock does. For a brief window, you can buy it for $0.20 per share. [Click here for the full story.]( Right now, after a wild year when oil prices went negative, we are having a tremendous drop in demand. Just look at this chart on the oil rig numbers: [RIg Count] This is unprecedented. There are fewer than 200 producing oil rigs in the country? Crazy. It's almost unimaginable. But one could make a very strong argument that this is the bottom of oil prices and a demand surge could very easily send it over $100 a barrel. Oil demand grows along with the economy. A growing economy leads to higher oil prices and profitability, especially when there are fewer producers. And there are fewer producers. According to Reuters, oil and gas companies spent over $156 billion on corporate takeovers and land deals during the second U.S. shale boom a few years ago. Many of these loans won’t be repaid, which means banks won’t lend more. Thirty-six U.S. energy companies have gone bankrupt so far this year. Rystad Energy expects another 150 will file by the end of 2022. Crisis to Spawn a New Set of Millionaires? The last time government spending of this magnitude happened, one overlooked sliver of the stock market ROARED. Throwing off HUGE winners like 6,694%... 8,729%... and 23,673%. But this time around, with over $6 TRILLION in “stimulus” flooding the economy, I expect that we could see much bigger profits. [Tap here for the details.]( Production in the U.S. has dropped by over 1 million barrels per day. Oil storage is full worldwide. The Dallas Fed Energy Survey said that 82% of respondents shut in production in the second quarter. These wells cost money to restart. But we here at Angel Publishing are nothing if not contrarian investors. We look to the future and say, “What if oil demand goes back up?” And so it will. COVID-19 death rates have dropped to a minimal amount. New York is running about three deaths a day and the trend is down. I predict the plague will be over in two months. Lockdowns will be lifted. Travel will resume. Here is a chart from the ExxonMobil investors presentation. Demand is already returning. Production will remain weak. [Fuel Demand Chart] This sets up a perfect buy for the surviving companies. Those with strong balance sheets and low production costs will make money hand over fist. And it just so happens we found one. [Click here]( and start making money today. Peace out, [Christian DeHaemer Signature] Christian DeHaemer [[follow basic]@TheDailyHammer on Twitter]( Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of [Bull and Bust Report]( and an editor at [Energy and Capital](. For more on Christian, see his editor's [page](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [Smart Cities Won't Be Possible in the U.S. Until December 8, 2020]( [The Truth About the Fed and QE]( [GoodRx Shows Us Its Profitability]( [Good Stories Get Better, Bad Stories Get Worse]( [Battery Day: A Make-or-Break Moment for Tesla]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Wealth Daily, please add newsletter@wealthdaily.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. [Wealth Daily](, Copyright © 2020, [Angel Publishing LLC](. All rights reserved. 3 E Read Street Baltimore, MD 21202. The content of this site may not be redistributed without the express written consent of Angel Publishing. Individual editorials, articles and essays appearing on this site may be republished, but only with full attribution of both the author and Wealth Daily as well as a link to www.wealthdaily.com. Your privacy is important to us -- we will never rent or sell your e-mail or personal information. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. [Wealth Daily]( does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. ---------------------------------------------------------------