Historically, the market has followed the Federal Reserve.
But today, the Federal Reserve follows the market.
Of course, the market is throwing a tantrum with that newfound power dynamic.
Wall Street experts want a rate cut, and if it isn’t delivered, they start selling.
That selling happened at the end of last year, when the Dow dipped more than 15% in December alone. That action was rewarded with more dovish policies from the central bank in 2019.
And it’s not just stocks that are going higher.
All asset prices including crude oil are lifted by easy money central bank policy.
For oil prices, it was smooth sailing up until April, when WTI crude prices peaked near $65.
Low inflation numbers are not helping matters and have further strengthened the call for dovish policies.
THE ULTIMATE OIL PLAY: 548% in potential profits from a potentially endless stream of oil royalty checks designed to get bigger and bigger. Learn more…
Dovish statements are not enough.
A full-blown rate cut is now demanded.
Of course, a strong jobs report for June threw a wrench into those plans.
With the market trading at historical highs and economic data adequately positive, the Federal Reserve may not deliver the goods.
Naturally, that led to another “tantrum” by the market. Just when you think you’ve figured out which direction prices are moving, they whipsaw the opposite direction.
Now that it looks like the Fed will cut rates, oil prices are rallying nearly 4% today alone.
And there are even bigger catalysts on the way.
The International Maritime Organization (IMO) is implementing new rules with respect to international shippers. Tankers in 2020 will be required to lower sulfur specifications for bunker fuels used to power engines.
This new regulation will immediately increase demand for low-sulfur fuels by an estimated 2 million barrels per day.
That coupled with the current market makes the stock we have for you today an excellent buy.
Here it is…
The Best Stock to Buy Now to Profit from Oil Volatility
Those new IMO rules for 2020 scream “buy” for oil refining stocks like Valero Energy Corp. (NYSE: VLO).
All of the volatility triggered by market tantrums has resulted in wild swings for Valero shares.
The stock traded as high as $91 per share at the end of April this year and as low as $71 per share in early June.
Those are big moves, considering crude oil prices have traded in a tighter range this year.
And those moves give us an opportunity to buy in advance of the IMO catalyst.
Already analysts are expecting big things for Valero in 2020.
The company is estimated to make $6.36 per share this year growing a whopping 66% in 2020 to $10.54 per share.
Only the fastest-growing technology companies offer that sort of growth.
With Valero, we can own a stable oil refiner growing profits like a weed.
And we don’t have to pay a huge premium to get that growth.
Unlike a stock like Beyond Meat Inc. (NASDAQ: BYND) that trades for more than 80 times annual sales, Valero trades for just 13 times 2019 estimated earnings.
Assuming Valero makes the number expected in 2020, the multiple drops to eight times earnings.
The biggest complaint of most investors with the current market has to do with valuations.
In the case of Valero, we get the massive discounted valuation and growth.
Considering the IMO regulations going into effect in 2020, the numbers are likely even better.
Valero also pays a rich dividend. It is making a ton of money and distributing that cash to investors.
At the moment, Valero pays a 4.4% dividend yield.
Compare that to the paltry yields in the bond market.
There is no contest.
Put it all together, and there are huge profits to make with Valero.
Just get in on the action before IMO regulations take effect in 2020.
Here’s the Truth About the Great Oil Panic of 2019
You’ve seen how cutthroat Middle Eastern geopolitics could potentially bring massive volatility to the crude sector this year. But that’s just one small piece of a very complicated, tricky puzzle. There’s more – much more – in play in what Kent’s calling the most “shocking prediction of [his] 40-year career.” Get the details…
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