Barack Obama visited my hometown of Minneapolis yesterday for a fund- raiser. Nothing spectacular in that other than the interesting demonstration put on by the local Republican Party in response.
Apparently the younger generation of the local GOP was quite amused with Obama’s suggestion that more oil could be saved by keeping tires properly inflated and engines regularly tuned as opposed to more drilling.
The response was to mock the man by showing up at his fundraiser toting tire pressure gauges and taunting him for his opposition to off-shore drilling. Seriously folks, I can appreciate party loyalty, but stop the insanity.
Criticizing a candidate in this way scares me in that it demonstrates the inability of those so married to one ideology that they fail to appreciate ideas that actually work for the greater good. It truly shows how blinded we have become when it comes to politics. And before you go accusing me of being a bleeding heart liberal, the Democrats are equally guilty of this offense. It is truly disheartening on both sides of the spectrum (see also, “Red Stocks, Blue Stocks“).
Ultimately, all that matters here with respect to the issue of oil is a much-needed change in behavior. If we want to break the addiction to Middle East oil and all of the problems, and there are many, it means we need to change.
It is plain, simple, and it matters in a big, big way. Aside from the benefits of reduced carbon consumption, cutting oil usage will drive prices lower and lower oil means higher stock prices..
If you have not noticed, the market is on a tear of late, and the main reason for the gains is tied directly to the drop in oil prices. Thus if we keep the pressure on the market by cutting our consumption in a major way, stock prices will rise accordingly. Is it time we all need to start pitching in to conserve energy? You bet. I’ve been saying this for months (see, “The U.S. Searches for Self“).
By my estimation, we could see positive market gains for the year if we can push oil prices below $100 per barrel. For the longest time, the hedge funds and big dollar speculators controlled the market (see, “The Oil Stock Pyramid Scheme“). Not anymore. The consumer is in complete control at this point in the drama. That is…> if we can get our act together and work like heck to conserve our consumption.
Waste Not Want Not
Seriously, stop the petty political bickering and game playing. Obama was right in suggesting that we consumers could do some damage in the consumption game if we just manage to keep our tires at the right pressure. How hard is that? And there are so many other little things that we can do like this in order to win the game and make some money along the way (see also, “Let the Sun Shine In On Solar Stocks“).
Let me share a story on consumption that you may find amusing. I do most of my writing in the friendly confines of a local coffee shop. This summer, I have been particularly annoyed because said coffee shop likes to keep the air conditioner set to blizzard conditions. I can appreciate wanting to keep customers comfortable, but my god it is literally freezing in the place.
It has gotten so bad, I need to wear a jacket, and I am getting darn close to wearing mittens (but I need my fingers for the typing!) Talk about waste, and this place is big! Here’s a thought: Let’s call for a national holiday on air-conditioning use.
How about a national work at home holiday? Or, Jiffy Lube presents, “Get your tires at the right pressure” day! Any one of those things will keep the pressure on oil traders and move us that much closer to $100 oil or less.
The Complacent Consumer
Do not become complacent because oil prices have dropped. I want my stocks to go up in value, and I am beyond convinced that lower oil prices will make that happen. Think of the drop as the equivalent to multiple reductions in interest rates from the Federal Reserve or rebate checks from the government.
The market is lower on fears of consumer weakness. Lower oil prices in return for being a little bit warmer in our homes or coffee shops might be a small price to pay.
That’s why I say, keep the pressure on!
Forget about the banks and the homebuilders–they’re going to be in rough shape for a long time. You need to focus on the great secular growth areas of the global economy where investors can make some nice profits in ’08. And that’s solar stocks! Want in? Just sign up for your 90-day, risk-free trial subscription to ChangeWave Investing!
