Political Policy Changes Redefining One Industry and Creating Massive Opportunity

Matt Thalman - INO.com Contributor - ETFs


This summer investors have witnessed firsthand how political policy changes can affect commodity and equity prices. In July both France and the United Kingdom announced it would ban the sale of diesel and gasoline powered cars by the year 2040. Other countries like Norway and India have set goals of even earlier dates to no longer have oil based vehicles sold by 2025 and 2030.
India had even taken it one step further and announced that not only will gasoline vehicles not be sold after 2030, but all gasoline vehicles will need to be replaced with electric and battery powered vehicles by that year.

The Netherlands wants to switch to electric vehicles by 2025 while Germany intends to make the change by 2030, but neither has set these plans in written law. But, the most notable announcement comes from China, a country that has over 300 million registered vehicles. Chinese authorities have not yet set a deadline for the end of sales of internal-combustion vehicles, but they have made it clear that they are working on a timetable.

While the U.S. and some of the other leading countries around the world have yet to come out and formally announce a date of when internal combustion engines will no longer be allowed, many believe there will come a day that all first world countries have such a ban.

So from an investing perspective, cashing in on this opportunity is simply just buying investments today and waiting. Continue reading "Political Policy Changes Redefining One Industry and Creating Massive Opportunity"

The Best Way to Invest in the "Oil of the 21st Century"

The United States alone consumes 18.9 million barrels of oil every day, rain or shine. And China's appetite grows more ravenous by the minute, with daily consumption doubling from 5.5 million barrels in 2003 to nearly 9.8 million in 2011.

Aside from a brief downturn during the recession, global oil consumption has been moving inexorably higher.

Worldwide oil consumption passed its pre-recession 2007 peak in 2010 and continues to rise. It is projected to reach 90.2 million barrels per day this year. Meanwhile, the world's oil companies will only produce 90 million barrels per day.

In other words, demand will outstrip supply by 200,000 barrels per day, or by about 73 million barrels this year. Continue reading "The Best Way to Invest in the "Oil of the 21st Century""