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Fed put is in play. Thatâs why the market is bouncing.
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Reminder how much of Texasâ economy is tied to fossil fuel extraction. Not exactly a future-proof ticket for the new millennium.
Oil companies producing in the Permian Basin do not make money at $55, let alone $46.24. Many of these companies barely survived $60 oil by relying on high-interest loans and hope that Saudi Arabia, Russia and other foreign powers would eventually cut production and drive up prices.
Almost all of Texasâ economic outperformance is attributable to the oil and gas industry; a bust will put us on par with the national economy at best. If COVID-19 takes hold in the United States and slows the national economy, it will have an outsize impact on Texas.
California has Tesla, Google and Apple. Texas just keeps digging in the ground.
The oil fields are in North Texas, not in Austin. Austin economy is well diversified. Since you want to know, I check:
My rentals are in N/NW Austin and its N suburbs, not in North Texas. Btw, Austin has AAPL, AMZN, MSFT, GOOGL, FB, IBM, ORCL, ⌠TSLA coming soon.
If we do go into a recession I wouldnât count on people lining up to plunk down money on Teslaâs either - especially if we have cheap gas. And Googleâs advertising revenue - which is all they really have at the end of the day - will also suffer.
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During Great Recession, ad revenue shot up 
In a recession commodity prices are the first to go down the toilet. Ground digging is the worst business to be in in a recession.
If you can get the timing right, then switch all to Treasuries.
However, most of us probably get caught in the midst, in that case, sell all speculative and growth stocks, and plough into cash-rich companies like FAAMG - may be not AMZN - No idea how low these stocks would decline to but these stocks would recover first and moon much higher post-recession.
EV cars are still economical unless oil comes to $1.5/gallon.
Tesla is expensive, but Chevy Bolt is least expensive reliable car. This is my 6th year with two EV cars and my next 3 years with another two Chevy bolts.
Presently, we get this rate : Yesterday, my friend bought a new bolt with this price.
Down payment $2000 with monthly rate $290 for 3 year Chevy bolt 260 miles/charge. The down payment $2000, consumer gets back from CA government funding.
I drive daily 70 miles both ways, use bolt for weekend shopping appx 40 miles. The monthly charge at home costs $40 with EV rate $0.12/KWH
Essentially, total costs is $330/month.
If I buy a Honda Civic or similar, 70 miles * 25 days + 4 weekend milage = 250 = Total mileage 2000. If I assume 20 miles/gallon on average = 100 gallons => 100 * $3.50 = $350/month.
If Gas comes to $2/Gallon or $1.5/Gallon, many oil companies will file bankruptcy as of date.
Itâs already close to that once you get away from CA.
https://gasprices.aaa.com/state-gas-price-averages/
The problem with electrics is practicality outside of urban centers. I could never get around AZ in one. The Telsa charging stations in Payson - the only ones on the nearly 200 mile stretch between Phoenix and Flagstaff - sit empty nearly all the time while the six gas stations within a mile of them do a brisk business. Half an hour to fuel up just doesnât work for most people even if you give them a charging infrastructure.
You can have at home, small EV charger like this https://www.costco.com/versicharge-lvl-2-universal-electric-vehicle-charger.product.100295506.html
It costs $350 (Costco deal) during Dec 2019 deals, my friend bought it and paid $300 to install in garage. With EV rate 0.12/KWH, this charger can be programmed to start at 12 midnight and completes charge in 2 hours. This is almost $0.03 per Mile usage.
Every day morning, car is ready with 230 miles range (max rating 260 for Bolt). I can drive from Gilroy to San Francisco and back (200 miles range) without even changing once in between. I tested my bolt with 175 miles balance, completed 150 miles, balance 25 miles left at my car.
Soon this range will increase 300, 400 and 500 miles/charge, easy to go Los Angeles without any charge.
For me, I have two charger at home, working nicely for the sixth year now.
I do not have any gas powered car at home as a stand by, fully using EV cars.
Additional benefit of EV cars: power investors.
During last summer fire warning and electric outage, I purchased power invertors exactly this one from home depot https://www.homedepot.com/p/DEWALT-1000-Watt-Power-Inverter-DXAEPI1000/301887060
Able to hook up my EV bolt, linked to Refrigerator, computers and TVs. Tested fine working well.
This can easily work 48 hours or more to power home equipment.
I do not need a generator, no gas smell, no sound, silently car was on power (you need to keep the key inside the car garage (closed), otherwise car shuts off in 2 hours).
Breakeven for EV is? Difference in price of cars = number of years * Difference is cost of gas * 12
âŚand where does 20 mpg come from? My 185 HP Mazda 3s gets 37.
In any case what do you do if you have to drive more than 200 miles?
We take a flight or/and rent a car.
Do the math. The only issue with EV is miles/charge, but when it comes to $500/charge, EV completely replaces Gas Cars.
This is sixth year I am using two EV cars. Long distance are covered by flights or Car Rental. I will not go back to Gas powered car in future.
Last time, when I went to LA, enterprise rental has Tesla models too, but they allow to use it with in LA.
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