JP Morgan was one of the most important figures in American history, though he was often operating behind the scenes.
The son of a banker, Morgan started his banking career with an advantage. He had knowledge, connections, as well as access to capital.
In the 1870s, Morgan spotted an opportunity in railroads. Many were running out of money before completing construction. Morgan funded consolidation in the sector.
Then in the 1890s, he financed the electricity industry. This allowed for standardization and the rapid spread of technology.
Morgan supported the economy in the banking crisis of 1907. He demonstrated the importance of a strong banking system and served as inspiration for the founding of the Federal Reserve.
Despite his extensive knowledge and experience, Morgan also understood what he didn’t know.
We can tell from a famous apocryphal story about Morgan…
At a time when stock prices were unusually volatile, Morgan was approached by a nervous investor. The investor wanted guidance and asked Morgan what the stock market would do.
And Morgan replied: “It will fluctuate.”
Whether he actually said such words or not, Morgan’s life and this story offer important insights into investing.
Capitalizing on Big Price Moves
JP Morgan’s father was a leading banker in London. Morgan realized he had more opportunities in the United States. So he moved there and created a banking empire by taking advantage of long-term trends.
He understood prices would fluctuate, and this allowed him to buy low and sell high.
If Morgan was alive today, he’d probably be looking at oil the same way he saw railroads after the Civil War.
The industry was growing. Demand was high. But growth required access to capital. Only the biggest companies or smartest people would be able to benefit from the boom and bust cycle of the industry.
Oil has long been known for booms and busts. Those terms describe the long-term trends. Right now, oil is in a boom. Demand is rising as developing nations continue to industrialize and grow middle classes.
Of course, prices won’t move straight up. They will fluctuate. And fluctuations offer ideal times to establish positions in the sector.
Adam O’Dell is playing this boom with all that in mind.
His extensive research on the oil industry has led him to uncover a tiny $20 oil stock that is set to soar in price by end of January. Now he’s sharing the details of the growing $10 trillion industry and a timely trading opportunity in a special broadcast.
Editor, Precision Profits