Your new prize... The most expensive gas in America... This trend isn't changing... Thoughts on vertical farming... A land of $10 gas and no water... New report from our Doc Eifrig... The best states for your retirement... Local radio stations are really responding to high gas prices... Every time I (Corey McLaughlin) get in the car nowadays – which isn't a lot – I've noticed something different on the radio... When the host is broadcasting a new promotion or sponsored giveaway, it often has to do with gasoline. Ain't that fun. Instead of the usual promise to give away a cash prize to the seventh caller or whatnot, radio stations are now offering gift cards to a gas station or running ads that promise discounts on a gallon. This is what it's come to... This is life in 2022 with inflation, where dollars are worth less and the gas costs more than it ever has before... and keeps getting more expensive... I can't blame the radio stations. They know their audience: folks in the car already burning fuel. One station in Northern California is selling regular gas for $9.60... Most folks use the free GasBuddy app to find the cheapest gas stations. But it can also pinpoint the most expensive gas in the country. It's sold at Schlafer's Auto Repair in Mendocino, California, on the Pacific coast in the northern part of the state. According to a report from a local ABC affiliate in Fresno, regular gas at Schlafer's pumps is going for $9.60... and $9.69 for plus and $9.91 for supreme... Check out this raw deal, almost $50 for five gallons... Paying nearly $10 per gallon of gas is more the exception than the rule... so far. Even in California, which has the most expensive gas of any state today, the average cost of a regular gallon is $6.34. That's an eye-popping record high, but at least it's not $10. But what's happening at this one rural gas station, without exaggeration, could go down as a dubious leading indicator. A number of factors contribute to California's particularly high prices, as I'll get to momentarily, but... The station's owner says she's charging so much for no other reason than she needs to make ends meet... The station gets its gas from Chevron, but it's independent and doesn't sell food or drinks to help turn a profit. This circumstance isn't overwhelmingly unusual, complex, or quickly fixable... But it's reality... all over the country. Even big chains are dealing with the scourge of inflation like everyone else. As I've written as far back as August 2021, the supply-demand imbalance in the oil and gas industry was likely to drive oil and gas prices much higher in the years ahead... I won't rehash all the details – we did that recently in the May 17 Digest if you're interested – but just know higher prices were likely going to happen even before the war in Eastern Europe poured lighter fluid on the trend... And also know that crude oil prices have accounted for at least half the price you pay at the pump for the past decade, according to a long-running monthly report published by the U.S. Energy Information Administration ("EIA"). As of April, 60% of the cost of a regular gallon of gas was tied directly to the price of oil. And that was two months ago, when a barrel of Brent crude – the international benchmark – traded about 6% lower than today's price for much of the month. Today, for all these reasons, gas prices continue to skyrocket at a pace the U.S. has never seen before... The national average for a regular gallon is $4.92, according to AAA, which publishes daily gas price analysis on its website. That's an all-time high... It's also a nearly 60% increase from this time last year, when an average gallon was $3.10. And it's more than 120% higher than June 2020, when the world was crawling back from the worst of the pandemic lockdowns... Even back in the 1970s, during the "oil crisis," the price spike wasn't nearly this bad... From 1973 to 1974, the national average for gas rose "only" 50%... Later in the decade, it soared 80%, but that was over two years from 1978 to 1980. Today, 14 states are averaging $5 per gallon or more... The cheapest state average is $4.33 in Georgia, so you're in some form of luck if you live there, at least... Not so much in California. Things are the worst there because of a number of factors, but namely tax and regulatory policies. As Sanjay Varshney, a professor of finance at California State University, Sacramento told The Hill in March... First, taxes are higher generally in California, so the gas tax itself is higher. Number two, California environmental and emission laws are tougher, so the mix required [for] gasoline tends to be more expensive. California is also a "fuel island." The state's fuel supplies are either produced in-state or transported there by ship or truck – costlier methods than pipelines used elsewhere... And those costs are passed on to consumers. According to the Western States Petroleum Association, in-state production in California covers only about 30% of the state's needs. Here's the association's Kevin Slagle... The other 70 percent or so is imported from around the world, some from Alaska, but really mostly from the Middle East, Ecuador, countries like that. So we have a situation where our... supply is limited by what we can produce in-state [and] we've had production drop quite a bit over the last five or six years. Add it all up, and you have folks who own gas stations trying to figure out how to reprogram their pumps to show double-digit prices. One gas station in Washington state has already done it, in case that possibility becomes necessary. Moving on to a related point, about commodities... This comes via a note we received over the weekend... Herman V., who has been a subscriber since 1999 (that's our entire existence, by the way), wrote in with the following response to my Sunday Masters Series essay titled "The Next Commodity Supercycle Is Upon Us"... Dear Corey, You have yet to experience the real boat that'll sail in the near future. Picture us already living on Mars and how we'll be farming our sustainable crops. That's right... "indoors." Both NASA scientists, researchers, engineers and farmers are currently teaming together to thinkstorm "under the hood" farming. They're coming up with ways to mitigate natures' negative weather storms and reliably produce indoor "produce." Take countries like Holland, which is currently leading the way in cultivating acreages of indoor farming. You need to start looking into these trends for future Stansberry Research investment possibilities. Indoor farming will become the rage and the world's salvation as we turn away from meat to plant-based proteins. A recent documentary on Prime Video called "Eating Our Way to Extinction" is pounding away at our subconscious and will eventually turn us all into vegetarians. First, I can't see myself ever voluntarily choosing to be a vegetarian... no matter how many documentaries may try to convince me I should. Still, your points are taken about the future of farming and food... I suspect we'll hear more and more in the years ahead about exactly the ideas you're talking about... We're hearing and seeing a lot already... And since we're talking about something as essential as food supply, the discussion isn't likely to go away – and shouldn't. As far as research on this sort of thing, we actually already have some... In Matt McCall's MegaTrend Investor newsletter, our colleague Matt McCall has an open recommendation for a "vertical farming" company that sells products to help farmers grow crops indoors, as you discussed. Matt calls this a "picks and shovels" company. That means it provides infrastructure for farmers, which is a scalable and potentially lucrative strategy if the products are in demand. He recommended the company late last year. In his most recent issue of MegaTrend Investor, Matt updated subscribers on this relatively small company, noting that it's expecting to grow its sales substantially compared to a year ago – a remarkable feat in this economic climate. The company has several catalysts... A land of little to no water... I'm not trying to start a climate-change debate, but for example, there's no doubt right now that California has been suffering through a massive drought... and we know a lot of food comes from the state. As strange as it might sound to some people, growing crops indoors – with vertical watering and artificial lighting – may become more appealing if nature becomes more hostile to traditional farming. As Matt wrote in the May issue of MegaTrend Investor... With food production under pressure around the world, agricultural technology has become as important as ever... In last month's issue, we talked about California and its ongoing drought. A month later, the situation is even worse. More than half the state is now in extreme drought conditions, and almost all of the rest is considered either "moderate" or "severe." The drought in California has gotten even worse in the past few weeks, with large regions in the middle of the state considered in "exceptional" drought territory as of June 2. Here's more from the May issue of Matt's MegaTrend Investor... One of the main sources of the state's water supply – the Sierra Nevada snowpack – is down about 80% from its normal levels at this time of year. And as we've seen lately, crops are in short supply as well. The ongoing conflict between Russia and Ukraine has disrupted exports of crops like wheat, barley, sunflower oil, and more. These factors continue to push food prices higher – with the food component of the April Consumer Price Index jumping 9.4%. And that came after an 8.8% year-over-year ("YOY") increase in March. You might have noticed Matt just mentioned the Consumer Price Index ("CPI"), a popular measure of inflation. So, yes, all of this is contributing to higher prices in the economy, too. In short, there's a lot to this story... In April, Matt dedicated a full issue to the challenges facing the agriculture industry right now – from the uncertainty in Eastern Europe, to broken supply chains and changing growing conditions. If you haven't already, you should give that issue a read. And if you aren't already a subscriber to MegaTrend Investor, click here to learn how to get access to Matt's recommendations. Finally, if you are looking for a state that has some positive things going for it... We have some good news for you, particularly if you are nearing or in retirement... We'll end today by sharing the chance to access a brand-new 55-page report from our colleague and Retirement Millionaire editor Dr. David "Doc" Eifrig... It's called the "Best States for Your Retirement." Today we've explored how California – incidentally a place where Doc spends a lot of time for his wine business – is a land of nearly $10 per gallon gas and scarce water. Generally speaking, the state is also one of the more expensive to live in, as Doc shows in the report. California checked in as the second-most-expensive state for retirement, when you factor in taxes, according to Doc's analysis. He said the average retiree should seek roughly $1.4 million in savings to retire comfortably there. There are better or certainly cheaper options, Doc says... The best states for retirement... Whether you're willing to move across the country to make the most of your money, or you want to stay closer to home but find a state that fits your needs better, Doc and his team have got you covered. "Best States for Your Retirement" is a popular exercise that Doc and his research team typically update every couple of years... They crunch the numbers on a variety of factors, such as taxes, housing, health care, crime, climate, livability, and cost of living. Doc then gives a detailed breakdown of each category, which states rank the best in each of them... then shares the top 10 states for retirement to consider... and the five worst that you might want to avoid. For a taste of what you can find, and because we live here currently, I need to mention that Doc's lowest-ranking state for retirement is Maryland. While it doesn't rank worst in any one category, it was low enough across the board to rank last. Existing Retirement Millionaire subscribers and Stansberry Alliance members can access this new report here. And if you don't subscribe to Doc's signature publication, now is a great time to give it a try... Give Doc's Retirement Millionaire a try today... Frankly, Doc's "Best States for Your Retirement" report could be worth the modest subscription fee to his signature publication on its own... I've said before that a subscription to Doc's excellent Retirement Millionaire service is a must-have for any investor... For a discounted price of only $49 a year, you'll get 12 issues featuring monthly stock recommendations to protect and boost your retirement portfolio... The stock picks alone are worth the price of admission, but you get so much more, including health and wellness tips... plus a host of special reports and bonuses like the one we've mentioned today. Even better, you can give Doc's service a try risk-free for 30 days to claim your digital copy of the "Best States" report... If you are not satisfied for any reasons, let us know and we'll give you a full cash refund. It's hard to beat that. Click here to learn more about how to get started with a Retirement Millionaire subscription today... and let Doc help you decide where to spend your retirement – ideally where the gas is cheaper and there's at least a bit more water. A Stronger Dollar Will Force a Great Reset "The U.S. dollar has started to rise and, for various reasons, that causes a lot of problems," Brent Johnson of Santiago Capital tells our Daniela Cambone. Johnson says the dollar's trajectory will eventually lead to a currency crisis, and we may be in the early stages now. Click here to watch this video right now. For more free video content, subscribe to our Stansberry Research YouTube channel... and don't forget to follow us on Facebook, Instagram, LinkedIn, and Twitter. | Recommended Links: | Read This BEFORE Buying Any Oil Stocks Billionaire investors like Warren Buffett, Carl Icahn, and George Soros are pouring money into oil stocks. But according to one top analyst, the secret to investing in oil right now is NOT by buying a driller, explorer, or exchange-traded fund. Instead, learn the oil strategy that could have made you 20 times your money, right here. | |
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| New 52-week highs (as of 6/6/22): Atkore (ATKR), Black Stone Minerals (BSM), Continental Resources (CLR), Enterprise Products Partners (EPD), Freehold Royalties (FRU-TO), Northop Grumman (NOC), Suncor Energy (SU), Texas Pacific Land (TPL), Viper Energy Partners (VNOM), and SPDR S&P Oil & Gas Exploration & Production Fund (XOP). In today's mailbag, feedback on yesterday's Digest about the obesity epidemic... and more thoughts on Dan Ferris' latest Friday essay... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "I shake my head in disbelief at the idiocy concerning obesity. We live in an era where we expect 'drugs' will fix everything for us. "What a wonderful solution: We can keep shoveling in fried food, fast food, processed food, sugar, white carbs, sodas and all the other cr*p people 'nourish' themselves with... and then pop some chemicals to make it all better! It's genius! "When are Americans (and the rest of the world) going to realize that You Are What You Eat. And unless people radically change their dietary intake, the world is going to keep getting fatter, more unhealthy and prone to becoming ill..." – Paid-up subscriber Ian B. "Dan, Very interesting data on the bear rallies and the second set on commodity movements during a crash. It seems these two data sets are extremely useful in my opinion. Thanks for your efforts!" – Paid-up subscriber Al M. All the best, Corey McLaughlin Baltimore, Maryland June 7, 2022 Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open positions across all Stansberry Research portfolios Stock | Buy Date | Return | Publication | Analyst |
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MSFT Microsoft | 11/11/10 | 962.1% | Retirement Millionaire | Doc | MSFT Microsoft | 02/10/12 | 827.2% | Stansberry's Investment Advisory | Porter | ADP Automatic Data | 10/09/08 | 773.6% | Extreme Value | Ferris | ETH/USD Ethereum | 02/21/20 | 644.9% | Stansberry Innovations Report | Wade | HSY Hershey | 12/07/07 | 499.6% | Stansberry's Investment Advisory | Porter | BRK.B Berkshire Hathaway | 04/01/09 | 453.5% | Retirement Millionaire | Doc | AFG American Financial | 10/12/12 | 440.9% | Stansberry's Investment Advisory | Porter | FSMEX Fidelity Sel Med | 09/03/08 | 296.3% | Retirement Millionaire | Doc | ALS-T Altius Minerals | 02/16/09 | 285.2% | Extreme Value | Ferris | BTC/USD Bitcoin | 01/16/20 | 272.4% | Stansberry Innovations Report | Wade |
Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio. Top 10 Totals |
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3 | Retirement Millionaire | Doc | 3 | Stansberry's Investment Advisory | Porter | 2 | Extreme Value | Ferris | 2 | Stansberry Innovations Report | Wade | Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Stock | Buy Date | Return | Publication | Analyst |
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ETH/USD Ethereum | 12/07/18 | 1,448.6% | Crypto Capital | Wade | ONE-USD Harmony | 12/16/19 | 1,417.0% | Crypto Capital | Wade | POLY/USD Polymath | 05/19/20 | 1,095.5% | Crypto Capital | Wade | MATIC/USD Polygon | 02/25/21 | 790.5% | Crypto Capital | Wade | BTC/USD Bitcoin | 11/27/18 | 735.2% | Crypto Capital | Wade |
Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio. Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios Investment | Symbol | Duration | Gain | Publication | Analyst |
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Nvidia^* | NVDA | 5.96 years | 1,466% | Venture Tech. | Lashmet | Band Protocol crypto | 0.32 years | 1,169% | Crypto Capital | Wade | Terra crypto | 0.41 years | 1,164% | Crypto Capital | Wade | Inovio Pharma.^ | INO | 1.01 years | 1,139% | Venture Tech. | Lashmet | Seabridge Gold^ | SA | 4.20 years | 995% | Sjug Conf. | Sjuggerud | Frontier crypto | 0.08 years | 978% | Crypto Capital | Wade | Binance Coin crypto | 1.78 years | 963% | Crypto Capital | Wade | Nvidia^* | NVDA | 4.12 years | 777% | Venture Tech. | Lashmet | Intellia Therapeutics | NTLA | 1.95 years | 775% | Amer. Moonshots | Root | Rite Aid 8.5% bond | 4.97 years | 773% | True Income | Williams |
^ These gains occurred with a partial position in the respective stocks. * The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. |