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Cheap gas is temporary. In this weeks edition of Fortune there is an oil and gas expert that predicts $500 a barrel oil in the near future. He might be wrong but his points all made sense and he as been right on the money so far. In the last 6 years we went from $20 a barrel oil to about $150.
If we look at simple supply and demand, the supply is going down and the demand is going up. We have 300 million people. China has 1.3 billion and India has 1 billion who are all trading in their bikes for cars.
Anyone expecting cheap gas in the future will be in deep chit if it doesn't work out. You are better off playing it safe and then if we do have cheap gas you will still come out ahead. By playing it safe I am referring to buying a house 40 miles from work or living 1 mile from work. Buying a 6 mpg Hummer or a 30 mpg compact.
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