The Last Time Oil Did This, A Few People Got Filthy Rich (It Just Happened Again)

Added: 2026-06-04

[00:00:00]If we take a look at history, the worst part of an oil crisis is not the oil crisis itself. It's 6 months after the oil crisis ends. Take a look. This is a chart by Bloomberg showing the stock market during the 1973 oil crisis. And you'll see right here in October 1973, the United States entered a war in the Middle East, causing oil prices to skyrocket. But the stock market stayed strong. 6 months later, the oil crisis ended in March 1974. But again, the stock market is still relatively strong.

[00:00:30]And it wasn't until 6 months after the oil crisis ended in October 1974 that now the stock market crashed by 45%.

[00:00:40]Now, the reason why I'm making this video specifically is because after the oil crisis ended in the 70s, some people became incredibly wealthy because of what came next, and it could be happening again. And I want you to be on the winning side. That's why in this video, I want to dig deeper into oil and our economy based off of what has happened in history. That way, you can be a smarter investor, not just to protect your money, but also to find the opportunity to grow your wealth even faster. And this is also one of the reasons why on June 16th, 2026, I'm hosting a live free and virtual investor workshop where I'm going to be going over number one, how our economy is changing right now, and number two, how these changes are going to create bigger and new investment opportunities for you. So, if you're thinking about how do you invest your money, how do you build your wealth, how do you build wealth outside of a 401k, this workshop I'm going to be showing you how you can actually do that by investing your money yourself into where the opportunities are moving. This workshop is free and it is live. But because it is live, you do have to register and there are a limited number of people that can actually join me live because of our software restrictions. Every time I've done this in the past, we've hit capacity. So, if you're interested, please register soon.

[00:01:52]And as an added bonus, when you sign up for the workshop, you're also going to get added into Market Briefs, which is my newsletter for investors, completely for free. And when you actually show up live on June 16th at 12:00 p.m. Eastern time, noon, you're also going to get a copy of my company's new book, How Money Changed Forever. You're going to get this for free when you actually show up live on June 16th at 12:00 p.m. Eastern time, noon. So, if you're an investor, you want to become an investor, and you want to see how you can grow your investments faster, how you can build wealth outside of just your home and your 401k, I invite you to join me on this investor workshop on June 16th.

[00:02:26]Again, I have that link for you to register down in the description below.

[00:02:30]Let's start by taking a look at what happened in 1973 compared to 2026.

[00:02:34]Because while history doesn't exactly repeat itself, it does rhyme. The 1973 oil crisis started because of two things. Number one was we were facing an inflation problem in the United States because in 1971 the United States dollar was taken off of the gold standard which meant now our government could start printing an infinite amount of money and inflation became a problem. Then after that inflation problem in 1971 the United States entered a war in the Middle East called the Yam Kapour war and as soon as that happened oil prices skyrocketed. You can compare that to 2026 where we were also already facing an inflation problem. This time because of the pandemic and the money printing that happened between 2020 and well now.

[00:03:18]So we were facing an inflation problem already. And then the United States entered a conflict in the Middle East when the United States attacked Iran which then caused oil prices to skyrocket. In the 1970s oil crisis, we saw oil prices jump up by about 300% at its peak. In 2026, we saw oil prices jump up to around 96% at its peak. As of today, at the time I'm recording this video, oil prices are around 40% higher than where we were before the conflict in the Middle East because of new talks about this oil crisis hopefully ending soon. But take a look at what happens next when we study what happened with the stock market during the oil crisis and 6 months after the oil crisis in 1973. 3 months after the United States entered the Yam Kapoor war, the United States is still at war. The oil crisis is still going on and the stock market is down 11% and a lot of people are saying, "Hey, the stock market is still contained. It's not too bad." Six months after the oil crisis started, the stock market is now down 15%. And this is around the time where the oil crisis ended, the oil embargo ended, and now everyone said, "Hey, we made it out without seeing major pain in the stock market, without seeing major pain in the economy. Things are going to be good."

[00:04:30]But take a look at what happened next.

[00:04:31]The oil crisis has now ended. The oil embargo is over after the six-month mark. But then nine months after the oil crisis started, the stock market continued to fall. Now it's down by 26%.

[00:04:44]Now people started to get concerned. 12 months after this oil crisis started, the stock market continued to fall and now it's down 43% and now the United States has entered a deep recession and we are in a deep stock market crash.

[00:04:59]Today, at the time of me recording this video, we are right around here, 3 months after the war in the Middle East started, and we are down right around 1% in the stock market. Yes, the conflict is still going on. There's talks about peace and all this other stuff happening, but the stock market is essentially flat, and everyone is saying, "Hey, the stock market is contained." Now, the question is, when will the war and the oil crisis actually end? And then, what's going to happen 3, six, nine months into the future? Are we going to see something like we saw in the mid1970s or are we going to see a different trajectory now in 2026? And the reason why this is so important is because what we saw happen here was some people became incredibly wealthy because of what happened after this. And to understand how people became wealthy after this oil crisis in the 70s, we have to take a look at how money changed and which investments actually were winners over the long run and how long it actually took for these investments to win. So let me diagram this out. I want to take a look at how money changed with inflation. How did salaries change with wages? Then I want to compare that to stocks, real estate, and gold to see what are the real investment winners over the course of 1 year, 10 years, and 20 years. Because again we can't predict what's going to happen in the future but the best way to learn is by studying what happened in the past because we have seen similar type of conflicts happen before. The first and major problem as a result of this oil crisis was inflation. Remember the United States government started printing a lot of money in the early 1970s because the dollar was taken off of the gold standard. Then when oil prices skyrocketed things got more expensive.

[00:06:35]Why? Because oil prices makes your gas more expensive. It makes diesel more expensive. It makes shipping products more expensive. It makes your groceries more expensive. It makes fertilizer more expensive. And so what we saw happen was over the next 12 months, inflation shot up all the way to 12%. To put that in perspective, during the COVID era, our inflation peak was just under 10%. So inflation really became a problem. Over the next 10 years, we saw a cumulative about 125% inflation. And over the next 20 years, we saw inflation add up to around 228%.

[00:07:10]Which looks bad, but again, this is all relative because now we have to compare the price growth of things relative to people's incomes. And what we saw, not surprisingly, is that incomes did not keep up with inflation. Over the next year, what we saw is that incomes grew by only 7%. Over the next 10 years, incomes grew by around 85%. By the way, I've taken a look at median incomes in the United States. And over the next 20 years, incomes grew by approximately 173%, which means the average person slowly became poorer. Why? Because your incomes went up, but they did not grow fast enough to keep up with the price growth of things. But this is where we need to take a look at the investment price growth over these same time periods. Because what you'll see is that certain assets made people richer than others. What we saw is that in the midst of the oil crisis and the inflation problem, paper assets like stocks got hammered. The stock market fell by 43%.

[00:08:10]While hard assets actually went up. Real estate prices went up by 10% which wasn't as much as inflation, but still better than what stocks did. While gold prices boomed. Gold prices went up by 68% during the same time period which not only beat stocks and real estate.

[00:08:28]But it also way beat inflation. Why?

[00:08:31]Because when people are concerned about inflation, we see gold prices generally benefit because people then want to own hard assets and they want to own an inflation hedge. But take a look at what happens as we start to zoom out for a longer period of time. Now, as we zoom out and take a look at what happened one decade, 10 years after the oil crisis started, what you see is that now the stock market has gone up. It's gone up by around 54%. But it still is not keeping up with inflation because remember inflation is 125%. Which means the stock market investors are still falling behind while now real estate investors are now ahead. Not a huge amount ahead, but real estate investors are ahead. Hard assets are winning while gold prices are still booming. The gold investors are now way above inflation again. So the hard asset winners have been winning one decade out after this oil crisis and the recession that resulted from it. But now things get even more interesting when we take a look out 20 years forward. Now stocks went from last place to first place as an investment because now what we see is that stocks are up 328%.

[00:09:35]Well above where inflation was over those 20 years. Real estate prices are up 236% which is also above where inflation is and gold prices are up 280% which is still above where inflation is but now below where stocks are. What we've seen is that over a long period of time investors win. Stocks, real estate, gold, they all win but certain win in different phases of our economic cycle.

[00:10:02]When there are more concerns about inflation, when there are more concerns about the prices of things, hard assets like gold and real estate tend to do better because people want a safe hedge for their dollars. They want a safe place to store their money. So they want an alternative to keeping their dollars.

[00:10:18]Then when there are less concerns about inflation, less concerns about the dollar, those are the environments where we see the stock market win. But at the end of the day, it is the investors that are winning. It is not the person that is relying on just their salary to survive because a common theme is the person that's just relying on their income is becoming poor. It doesn't matter over what time period that we see. The average person that's just relying on their salary has become poorer years and decades out and this trend has not slowed down. It is still going on since well the 70s through now.

[00:10:53]And so if you want to become wealthy you must be an investor. Now the difference between something like gold versus stocks and real estate is that your stocks and real estate are working to provide real value and they also have the ability to provide income. Gold is just a store of wealth. It is a protectionary hedge to protect you against this inflation because people use gold as an alternative way of saving money, a way of saving hard money. You could think of it because your gold is just sitting there in a vault looking back at you. It's not actually going out and doing anything. When you buy real estate, well, somebody could be living in that property that could create value. When you buy the Amazon stock, well, that Amazon stock is working to sell a product. It's working to produce a profit, which is working to produce a value. And one of the most important economic concepts that we learned, whether it's from the 1970s oil crisis or through the 2020 pandemic, is that inflation has a lag time somewhere between 6 to 18 months to feel the inflation from some sort of impact. So, we saw oil prices spike up because of the conflict in the Middle East in the beginning part of 2026. Well, today we're starting to feel the impact of the inflation due to these higher oil prices. But even if the war ended today and oil prices fell back down today, that doesn't mean that the prices of things are just going to start falling tomorrow because we still have to deal with the delayed impact of the higher prices of oil and the delayed impact of the higher prices of things because of the conflict of the Middle East. So you can expect many months of continued high prices even after oil prices fall. And that's why the real question and concern that investors should have is not what's going to happen in the economy today because of the conflict in the Middle East, but rather what's going to happen in our economy 6 to 12 months from today because of the conflict in the Middle East and because of the delayed impact of the conflict in the Middle East and because of the delayed impact of the higher oil prices, because of the conflict in the Middle East. What is that going to do to our inflation? What is that going to do to asset prices? And what is that going to do for the job market? Especially during a time where AI is taking away some jobs in the job market and during a time where we now have a new chairman at the Federal Reserve Bank who just started on May 15th, 2026 where we could be seeing new money policies. This could mean lowering of interest rates. It could also mean keeping interest rates high. President Trump wants lower interest rates, but those lower interest rates could make the inflation problem worse. And you can see now if we have a worse inflation problem, how they can create different impacts on our economy. Again, this is why on June 16th, I'm hosting my live investor workshop at 12:00 p.m. Eastern time, noon, because all these changes create new and unique investment opportunities, and some people were able to become incredibly wealthy as a result of it. So, I'm going to be going over our firm's research as to where the investment opportunities are moving.

[00:13:46]Again, if you haven't registered for it, I have that link for you down in the description. So, what we talked about in this video is that the worst part of an oil crisis from history is not when the oil crisis happens. It's 6 to 12 months after the oil crisis starts. We've seen this in history because in 1973 we saw a similar type of economic situation play out where the United States was facing an inflation problem because the dollar was taken off with the gold standard in 1971 and then in 1973 the United States entered the Yam Kapoor war. Well, after that happened, what we saw is the oil prices spiked up about 300% at its peak.

[00:14:22]Well, during the first 6 months, we saw the stock market fall, but not anything drastically. We saw the stock market fall by 11% in the first 3 months and a total of 15% over the 6 months after the war started. And that was when now the oil crisis had ended because that was when the oil embargo ended. And all the oil conflict everybody thought was over.

[00:14:42]But the stock market continued falling and so did the economy. We saw the stock market fall by 26% over the course of 9 months and then 43% over the course of a year and now the United States was in a full-fledged recession. Unemployment was rising and it caused a lot of pain in the economy. Well, today in 2026 we have some similarities. We have been facing an inflation problem because of the pandemic in 2020 and because of all the money printed that came as a result of it. And then in 2026, the United States entered war in the Middle East. When the United States attacked Iran, well, this caused oil prices to skyrocket. We saw oil prices jump up by around 96% at its peak. Today, it's much lower as there are the hopeful peace talks that are going on in the Middle East. But over the first 3 months, we've actually seen the stock market stay essentially flat again. Now, the question is, what are we going to see happen next? When is the conflict going to end? And what's going to happen 3 months from now, 6 months from now, 9 months from now? Are we going to see any sort of repeat of what happened in the 1970s? And the reason why this matters is because we saw some people become wealthier than others as a result what happened in the 1970s. Why?

[00:15:52]Well, we can just take a look at how money changed and how asset prices changed. What we saw is that inflation really ramped up as a result or partially due to the higher oil prices.

[00:16:03]It was also partially due to the money printing. But what we saw is that inflation then spiked at around 12% in the first year. It was about 125% inflation over the first 10 years and then 228% inflation over the first 20 years after the war. Well, we can compare that to wages. And what we saw is that the median income in America did not keep up with the price growth of things. So the average person who was just relying on their salary became poorer because of the inflation problem.

[00:16:29]But what we saw is that asset prices didn't follow a straight line. What we saw is that in the first year, gold was the winning asset because gold prices not only outpaced real estate and stocks, but gold prices way outpaced inflation while the stock market got hammered. If we take a look at the first decade, what we see is that again, gold prices were the winner. Now, what we see is that real estate also outpaced inflation, but the stock market was still losing to inflation. But now when we take a look at a 20-year picture, what we see now is that the winner was the stock market, not gold, not real estate. And so over time, what we see is that all assets have won as long-term investors, but certain assets win in different periods of the economy. During the periods of the high inflation eras, we have seen that more hard assets were winners. Then during the eras where inflation is less of a concern than the paper assets like stocks were more beneficial then does this guarantee that we're going to see the exact same thing happen in the future? No, absolutely not. Past performance doesn't indicate future performance. Nobody has a crystal ball. I'm not here to tell you what to invest in. I'm not a financial adviser.

[00:17:42]I'm just a random guy on YouTube. I'm here to show you how history has played out. Because while history doesn't exactly repeat itself, it does rhyme.

[00:17:52]And as an investor, if you can be a more educated person and you can understand what has happened in the past, it can help you find better investment decisions and make better movements with your money. That way, you can capitalize on what could be coming in the future.

[00:18:07]That's my goal to keep you educated.

[00:18:09]That way, you can make smarter decisions with your money instead of just randomly following what random people on the internet say. If you got value out of this video, the best thank you was a referral. Also, if you could, please share this video with a friend, family member, colleague, or fellow investor.

[00:18:22]That way, we can continue to spread this type of financial education. Thank you.

[00:18:25]President Trump just launched his new plan to save the United States dollar from the $39 trillion debt crisis. No, it's not by having the dollar backed by gold. And no, it's not by having the dollar backed by oil either. It's by having the United States dollar backed by crypto. Let me explain. The value of a money depends on if people believe that it has value. If I'm walking