Dear Reader,
Oil prices are up 9% this week!
We have people writing in, “omg, you guys are so smart – you recommended oil stocks last week and they’re up 10%”…
Before we get ahead of ourselves here, the Iran conflict has pushed oil prices up, but we’re long energy for a MUCH bigger reason, which is what I want to talk about today:
I also want to clarify something I said yesterday, because I got a lot of notes from friends and members who watched yesterday’s video.
I’m not an “interventionalist.” I don’t support regime change in Iran. That’s not how I see the world.
I think every country should just do what it does and act in its own self-interest.
The people should choose.
If they want regime change they should choose regime change. I don’t want to do that from the outside. It’s ridiculous.
I’m just talking about nuclear facilities – knocking out nuclear facilities is obviously a good idea.
People say, “why do you say that’s a good idea? Steve Bannon says it’s not. Tucker Carlson says it’s not.”
Look, philosophy teaches you how man should behave.
Psychology tells you how they might behave.
But history tells you how man has behaved.
For 6,000 years, we have a clear record.
That record says that when one region gets a weapon that gives it a serious competitive advantage over its peers, the others seek to balance that out by getting equal weapons.
From the introduction of bows and arrows, armor and iron, bronze age weapons, the cannon, the gun…
This is a real thing. History tells us what this is.
We don’t have to have a big imagination to imagine a world where Saudi Arabia, Iraq, maybe even Afghanistan, etc., etc., …
All these guys will want nuclear weapons because Iran can bully them, and we don’t want to live in a world like that.
And like I said yesterday, you have the risk an Osama bin Laden-type comes in and topples that government.
But moving past this, we hadn’t really talked yet about how this conflict has played out in the oil markets.
We’re very long a lot of energy plays right now.
The energy sector got hammered down a bit as people thought the economy was going to slow down with all these tariffs, etc., and a slowing economy brings down oil prices.
But I think even smart investors may be missing the greatest underlying theme of our generation, still. Seriously…
The AI revolution is being powered by oil.
So, yes, oil has risen 9% this week and we look like heroes – “omg, how smart those guys are, they recommended oil stocks last week and they’re up 10%,” yada, yada.
That’s all short-term stuff.
In the long-term, there’s never been a revolution on earth that has not been powered by energy.
Every technological revolution is an energy boom, at its core.
This is very important to understand.
When the railroad boom ripped across America, coal production surged from 10 million to 200 million tons to power the steam engine.
When Ford started making Model Ts, oil production exploded from 20 million to a BILLION barrels.
Nothing moves without energy.
And right now, we have created the biggest energy-consuming technology in history.
It’s really crazy.
When you look at energy demand relative to the introduction of the internet, it’s doubled, basically every 7-10 years.
And now, ChatGPT, Google Gemini, all these AI tools with over a billion users, they’re very energy-intensive.
Each query pulls on the energy grid 1,000-times more than a regular Google search.
There’s no denying it – the AI revolution is also an energy revolution.
There are plenty of companies that are really well positioned, so that every time energy moves around this country…
Every time someone makes a query…
It’s like they get a “royalty” on energy usage via AI.
It’s quite extraordinary how this all works and plays out.
See, these “royalties” knock off serious income to investors.
We’ve just updated our report on this, which we’re sending out to Takeover Targets members at 2:00 today.
I’m really excited, because it’s one thing to pick amazing AI stocks – the NVIDIAs, the Palantirs – that’s fun – that’s great – we made a lot of money for our members recommending Palantir at $7 in 2022…
There’s a LOT of opportunity in that – especially in robotics, etc. …
But the underlying energy that powers it is safer…
It pays ridiculously high dividends…
It’s an incredibly lucrative (and discounted) way to play the AI revolution without the risk and volatility of hot AI stocks trading near all-time highs.
Sure, energy is up 9% this week on the Iran news, but really it’s been down this year.
I think this makes a SUPER compelling entry point.
“The Buck Stops Here,”
