Friday, July 20, 2018

Price Freeze? Yes Please!

Comparing gas prices and economy prices to last year has been very interesting.  Gas was as low as $1.99/gal roughly last year this time.  As we approach Labor Day, a day where many Americans will be traveling and also thinking about the price of gas and gas efficiency, the worst mistake may be to say "gas is high and there's nothing I can do about it.  Here are some thoughts on perceived high gas prices:  1)  Gas is high but it could be much higher
Historically, comparing the bull market in the DJI and Nasdaq markets,  gas should be at about $3.19 by some estimates.  That's 50 cents higher/gallon
2)  Gas prices are normalizing and have become stable, not volatile
The previous years have seen gas prices go very very low then jump in volatility.  Sometimes the jumps were 20 cents or even 30 cents.  Volatility tends to be bad for many markets so a general "slow down in volatility" should be good for the western economy in ways.
3) Simple Hypermiling techniques should now be use (read other blog posts for ideas)
Hypermiling techniques and proper safe driving will go a long way.  As usual it's quite easy to increase your mpg by 3 mpg for whatever car you are driving.