The core U.S. consumer prices (CPI) showed a 6% jump in May, signaling that the U.S. inflationary environment is not going to ease anytime soon. Following the debate on who is to blame and how to curb inflation, Ross Gerber, a renowned Investment Advisor and Co-Founder of the GK ETF, shared his thoughts through a series of tweets.
For starters, Gerber blames the ongoing Russia-Ukraine war as the primary cause of the inflation. “We all know the key to breaking inflation is ending the war. We need to send the Ukrainian everything they need to finish off the Russian army. The sooner the better,” he quoted.
Gerber sees a loss of American jobs, coupled with higher rates and slowing demand to combat the lost Russian oil production, as the obvious consequence. Gerber’s tweet was flooded with comments that resonated with discontent. While many believe that war is not the reason for the current inflation, the majority believe the induced pressure on oil prices can be combated by increasing domestic production.
Furthermore, Gerber believes that the current inflation is completely manipulated by the oil majors and the Organization of the Petroleum Exporting Countries (OPEC). “OPEC and the oil majors have used war to make huge profits for years… Meanwhile, speculators continue to push oil prices higher with no intention of ever use the oil. Just profiting of lower income Americans,” he further quoted.
Eventually, Gerber believes “technology beats inflation every time” and that electric vehicle (EV) makers will be the biggest beneficiaries of the accelerated demand.
He quoted, “All EV companies are benefiting as consumers will pay a premium for an EV now that gas price are so high,” mentioning his all-time favorite EV maker, Tesla (TSLA), along with Gores Guggenheim (GGPI), a blank check company which is proposed to be listed in combination with EV maker Polestar, and another promising EV company, Arcimoto (FUV).
Nonetheless, opponents of the EV shift believe that the long waiting period for owning an EV will actually negate the effects of the rising fuel prices that may start to decline by then. A few even believe that the higher EV prices are not worth it.
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