Here’s How Trump’s Mission in Venezuela Could Impact Retirees
Written by
Marc Guberti
Edited by
Amen Oyiboke
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President Trump’s mission in Venezuela will have major ramifications for the world. Not only that, but it will affect retirees since the move is projected to boost the oil supply.
Many people will benefit if Trump can influence Venezuela’s oil supply production and make sure more of it goes into the United States. These are some of the long-term benefits of Trump’s Venezuela mission that will aid seniors.
Lower Energy Costs
Oil is a key factor in energy costs, and with high demand remaining constant, supply is a notable price mover. If Trump has Venezuela agree to send more oil to the United States, it will increase the total supply and bring down prices.
The president has also hinted at letting U.S. oil companies improve Venezuela’s oil infrastructure, which can significantly increase daily oil production.
Lower energy costs will make it more affordable to fill an entire tank of gas. It can also translate into lower utility bills since oil prices influence their costs.
Stock Market Rally
Retirees who lean heavily into stocks should enjoy a rally thanks to Trump’s involvement in Venezuela. Lower oil prices reduce shipping costs, which allows companies to enjoy higher profit margins. Consumers may also feel more inclined to spend extra money on various products and services since they aren’t paying as much for gas and utility costs.
Those stock gains can help retirees keep up with living expenses. It also means you don’t have to sell as many shares to afford everything, giving your remaining positions more time to grow. If oil prices remain depressed over the long run, it sets the perfect stage for a prolonged stock market rally.
Less Inflation
Lower oil prices will translate into less inflation. Lower oil prices mean it doesn’t cost as much for truck drivers to fill up their vehicles. That means truck drivers don’t have to charge as much per load, allowing companies to save money on shipping. Then, those savings get passed on to consumers.
Not every company will lower its prices to reflect how much they save from lower fuel costs. However, they may keep prices steady instead of raising them significantly higher over time. Lower shipping costs can also keep food costs low since farmers don’t have to pay as much to transport their crops and livestock.
Although President Trump’s move into Venezuela has created more uncertainty, access to more oil is great for the U.S. economy. Most retirees should benefit from this decision in the long run.
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