Our bizarre yet wonderful world today is full of ridiculous logic and false equivalencies.
We’ve been told, for example, that “silence is violence”. Or that misgendering someone is “literal violence”.
It’s almost funny how much the left loves to preach against violence.
Yet these are the same people who have condoned the Hamas butchery. And they’re the same ones who disrupt the lives of thousands of people by gluing themselves to the pavement… or often engage in violence and property destruction… in the holy name of climate change.
Frankly, it’s a level of fanaticism that borders on terrorism; the idea that their violence is justified because what they believe is more important than what you believe.
The climate jihad has been particularly difficult for oil companies.
Frankly, it’s incredible just how hated they are.
And it’s not just Greta Thunberg either. Some of the most influential movers and shakers in the world, including Larry Fink, Klaus Schwab, and even the US President, do everything they can to thwart and debilitate these oil companies.
It’s bizarre, because literally everyone in the world relies on oil companies. If they stopped producing, we would be back in the Stone Age.
Yet the world is full of fanatics, from high finance executives all the way down to children foot-soldiers, trying to end the oil companies’ existence.
The world is also full of experts who feel entitled to tell the rest of us how to live our lives, and they feel like they have the moral authority to do so. Yet these are the people who have broken the world.
They were responsible for the COVID lockdowns, the destruction of the education system, the mental health crisis, rising crime rates, and inflation.
It’s this same expert class that decided wokeness needed to be a priority in the Defense Department… which certainly hasn’t helped maintain peace and stability in the world as evidenced by the recent turmoil in the Middle East.
And we don’t see any signs of this abating.
Parents who speak out at school board meetings against having homoerotic literature in their kids’ elementary schools are investigated by the federal government… but Hamas can chop up babies, and top universities are happy to excuse it.
It’s for all these reasons that we’ve spent so much time talking about real assets. Because if there’s a singular tangible representation of the expert class, it is a nation’s currency.
Currency represents nearly EVERY bad decision made by the expert class.
When they decide to spend hundreds of billions of dollars to pay people to stay home and not work, or they want to spend an unlimited amount of money on foreign wars, or print trillions of dollars, or boost the national debt for asinine reasons…
The consequences of all those decisions end up in the currency; the dollar loses value and inflates away.
So, denominating everything in your entire life in that currency, is essentially a vote of confidence in the expert class.
The opposite of this is owning real assets.
Real assets are the critical, high-value resources that the world really needs. This includes things like vital, productive technology, key minerals, water, agricultural resources, and yes, even hated energy commodities like oil.
(Real assets also include the businesses that produce all of these things.)
Real assets are in many ways the antithesis of the currency, because they’re not really controlled by any government.
They also tend to be universal in value. Gold, for example is valued, and has virtually the same value, all over the world. It is not, nor can it be, controlled by a single government.
And it’s the same concept with most real assets.
From an investment perspective, what’s really compelling is that a lot of real assets are historically cheap right now. And that especially includes energy companies.
We’ve written about this before — many companies that produce coal, oil, natural gas, etc. have been raking in the profits, and yet their stock prices are in the dumps thanks to Fink, Schwab, Greta, and Joe Biden.
For example, just two weeks ago we published some research for subscribers of our investment newsletter The 4th Pillar about one particular oil company that is so successful that last year it paid a 41% dividend to its shareholders.
The company also has a pristine balance sheet with no debt. Yet its stock price is so cheap that the market value of the entire business is less than what it makes in a single year.
It’s easy to feel upset — and even angry — about how the expert class and the fanatic class are working so hard to destroy peace, prosperity and stability in the world.
It’s amazing when you think about it; virtually every single idea they come up with is not only a failure, but is extremely destructive.
Yet somehow they are still taken seriously.
I get it. I’m angry too.
However, it’s important to step back from time to time with a rational mind and acknowledge that their failures and their fanaticism do create some really compelling opportunities.
