According to GasBuddy.com, gas prices in the U.S. averaged $2.30 per gallon Tuesday, down 0.8 cents from the day before. Moreover, gasoline is selling for almost $0.49 per gallon less than last year at this time.
Better yet, GasBuddy predicts national average gas prices will be even lower, around $2.27 on the 4th.
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Part of the reason for lower prices is due to the impact of Brexit, which strengthened the U.S. dollar, weakened European currencies and forced global crude oil prices lower.
While some experts suggest the impact of Brexit will be temporary, others say the downward pressure on gas prices, including in the U.S. could last a while.
Gas Prices Plus Strong Economy
According to AAA, lower gas prices plus a strengthening economy will result in a record number of Americans on the road over the Fourth of July holiday weekend. And those folks will be spending money on more than just gasoline.
AAA estimated that U.S. drivers have saved about $20 million on gas this year compared to the same period last year.
Celebrating By The Numbers
As far as how money saved will be spent, the National Retail Federation conducted its annual July 4 survey and discovered the following:
- Patriotic merchandise, including clothing, flags and decorations will be bought by more than 24% of Americans, according to the.
- Only 8% of Americans said they would not celebrate Independence Day.
- Cookouts will take up part of the time for 6% of Americans.
- Nearly 48% said they would attend a fireworks or other community celebration.
The Spending Season
More than anything else, the coming of July 4 means summer is in full swing. The old market adage “sell in May and go away” notwithstanding, some equities deserve a serious look – even at this time of year.
With consumer confidence at its highest level since October, plus the savings being had on fuel, Americans are expected to spend. That said, spending will do more for some sectors than others.
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Summer Stocks To Own
The best trades seem to line up well with summer activities. Food, beverage and tobacco stocks are traditional warm weather winners. These include cigarette-maker Reynolds American Inc. (:RAIN/A) and beverage maker Constellation Brands Inc. (NYSE:STZC), both of which have averaged double-digit returns from May to October over the last 10 years.
Naturally travel stocks do well in the summer because that’s when those companies make the most money. The Priceline Group Inc. Stock not found PCLN, Expedia Inc. (NASDAQ:EXPEF) and Royal Caribbean (NYSE:RCLD) have all been top performers from May through October on an annual basis.