Click here: The Weekly Beacon – July 22 2022

We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.

Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.

This weeks issue: Price Hikes, food Prices, CPI Breakdown, U.S. Inflation, Narrative vs. Realities, President Biden, Historical Gas Prices, Seasonal Gas Prices, Senator Joe Manchin, West Virginia, U.S. Senate, Climate Spending, Energy Failures, Speaker Pelosi, Pelosi Capital Nvidia Stock, Best Traders, Corruption, Twitter Stock, Musk vs. Twitter, Media Narratives, Twitter Lawsuit, Will Elon Lose?, Facebook Stock, Snap Stock, Social Media Stocks.


Reality vs. False Realities

Many members of the Biden Administration have been applauding gas prices coming down over the last month. After all, oil prices have retreated from $120/bb to $100/bb. (Remember everyday oil is above $100/bb. Oil companies create more and more free cash flow).

The ironic part of this price decrease and national savings at the pump is the Biden Administration has taken full credit for it, but all the price increases were blamed on Putin, and greedy oil companies. As the national gasoline price has dropped from $5.00 to $4.50 per gallon over the last month, we hope that people stock up because this could be the lowest price for some time to come.

Although this price decrease is a good sign for consumers as prices seem to be dropping, it is still historically expensive compared to historical average oil and gas prices. Gone are the days of extremely low oil and gas prices. We might average $90-110/bb for the next year or two and that sustained price pressure will be horrible for consumers. That is without us even mentioning a circuit breaking and oil surging to $150/bb+ over the next year or two (which many analysts have predicted). Either way, the macro play has yet to change, market fundamentals are weaker now than they were in the winter, and oil companies continue to be discouraged to increase production and take on new projects.

We will leave this CPI breakdown with you and let you come to your own conclusions: