Gradient Investments President Michael Binger discusses the impact of high gas prices.
During an interview on FOX Business’ “Mornings with Maria” Gradient Investments President Michael Binger argued the country will be able to get through high gas prices due to increased wealth, until gas reaches about $5 per gallon.
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MICHAEL BINGER: Well, you know, obviously oil is going to spike here, I mean, but I want people to keep in mind that when we’ve looked at past oil spikes where oil is priced over 100, I mean, the country right now is much wealthier. And just yesterday, you know, someone who I think is pretty good is Tom Lee. He came out with a study that showed that wallet percentage where the cost of gasoline and energy as a percentage of wallet in this price spike is only 3% were in past price spikes, where it’s been over $100. It’s been, you know, 6 to 8%. So I do think we’ll get through this oil price spike. You know, I think we will have elevated gasoline prices for a while, but I don’t think we’re going to quite get to the point where there’s going to be a lot of demand destruction. I mean, here in Minnesota, oil, you know, gasoline is still $4. I don’t think we reached that point where it starts to choke the economy until we hit about $5 a gallon.
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Gradient Investments President Michael Binger weighs in on the economy and energy prices.
