The New Age of Physical Wealth: Why Real, Tangible Assets Will Dominate the Next Bull Market
When I think about what really matters in investing — what ultimately delivers enduring, wealth-creating returns — I always come back to one simple truth:
Real wealth is physical.
Not ideas alone. Not zeroes and ones on a screen. Not vapor-ware promises of "the next big thing."
Physical things — gold, silver, oil, pipelines, rigs, refineries, real infrastructure, energy supply chains — those are what power the economy and underpin real valuation.
We saw this truth carve itself into the headlines in the last few years. First it was gold and silver — pulverizing expectations, defying complacent Wall Street models. Then the surge in energy — where now, oil and natural gas are dominating where capital flows and where real profits are being realized.
And right now, we are standing at the dawn of what could be one of the greatest physical asset rallies of our lifetimes.
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From Metals to Energy: The Tidal Shift in Asset Leadership
Remember when gold and silver were dismissed as "old school," relics of yesteryear?
Then they rallied relentlessly — not just rising, but absolutely shredding assumptions about what a commodity could do in the modern investment landscape. They proved that the physical underpinning of money and industrial demand matters — especially when currencies wobble and geopolitical risk surges.
But that was just Phase One.
Phase Two — the energy revolution — is now underway.
Look at where the smart money has flowed this year: oil prices have become a central conversation, not a side note. Energy stocks are outperforming broad markets. Capital is rotating into tangible energy exposures — not tech fantasies — because the real world is demanding real fuel, real infrastructure, real capacity.
One of my trades in my premium service Extreme Opportunities, Direxion Daily Energy Bull 2X Shares (ERX), isn't just moving — it's smashing expectations.
I initiated coverage with a strong buy rating on ERX in early December 2025.
As of recent data, ERX is up close to 50% year-to-date, dramatically outperforming the broader market and proving that exposure to actual energy commodity leverage works when physical prices are rising.
That performance frankly mirrors the explosive move we saw in mining plays like JNUG — a leveraged gold and silver miner that ran as much as 454% in 2025 alone when precious metals began breaking out.
If fundamentals and sentiment shift in energy like they did in metals, ERX could be in just the early stages of its move.
The Oil Narrative: Why Physical Energy Matters More Than Ever
To understand why we might be on the threshold of a multi-year physical asset bull market — especially in energy — you have to embrace the fundamental constraint:
Energy is the lifeblood of the global economy. And today, the supply side is tightening while demand structural forces are increasing.
1. Geopolitical Risk Is Everything
The headlines have been dominated by Middle East tensions — especially involving Iran and its threats around the Strait of Hormuz, the bottleneck through which about 20% of the world's oil shipments flow.
Threats — even theoretical ones — that this chokepoint could be disrupted are enough to send shockwaves through energy markets. Analysts have said that serious disruption could push oil prices well above $100 per barrel — and under worst-case supply shocks, forecasts have ranged toward $120–$150/bbl and higher.
In short: geopolitical premiums matter more than ever. The market doesn't wait for disruption — it prices in the risk of disruption.
And here's the key take-away: risk premiums stick.
2. Supply is Tight, Demand Isn't Going Away — It's Just Rebalancing
You'll often hear economists point to "supply/demand balances." But the real story isn't a static chart — it's structural imbalance.
On the supply side:
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OPEC+ manipulation and output decisions continue to constrain spare capacity.
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Sanctions on major producers like Iran and Venezuela keep tens of millions of barrels effectively off markets.
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Inventory gluts can hide in obscure places (like floating storage), but that doesn't equate to accessible supply.
And on the demand side:
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Energy demand continues to grow unabated, not just from transportation but from industrial electrification, data center power requirements, petrochemicals, and global GDP growth. Even if technologies like EVs reduce gasoline demand over decades, oil still powers the world right now.
This isn't a short squeeze. It's a fundamental squeeze.
3. AI and Infrastructure Demand: A Hidden Energy Multiplier
Some analysts have argued that AI will weigh on oil by improving efficiency.
But here's the part Wall Street glosses over:
Data centers and AI compute aren't free. They need massive amounts of energy — not just electricity, but heat management, backup power, and grid stability — all of which indirectly increase fuel demand across sectors.
AI drives demand for electricity — yes — but electricity is still produced largely by thermal generation in many markets, which means continued energy demand, including natural gas and industrial coal feedstocks that are oil-linked.
Meanwhile, physical energy infrastructure like pipelines, processing plants, and terminals becomes the backbone of the modern economy, and real returns flow to those who own and operate it.
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The Midstream Power Plays: MPLX as a Physical Asset Winner
In that context, MPLX stands out.
I've personally owned MPLX since 2020. Here are my buy confirmations when I started buying MPLX in 2020:
Today, MPLX is trading over $58 a share!
This isn't a leveraged bet on price alone. This is real, tangible infrastructure:
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Pipelines.
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Processing facilities.
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Terminal capacity.
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Long-term contracts.
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High-yield cash flows.
That's exactly the kind of physical asset — with built-in pricing power, contracted revenue streams, and essential infrastructure — that prospers when energy scarcity and demand intersect.
Right now, MPLX is hitting new multi-year highs, with stock prices reaching 52-week highs and strong technical performance.
Analysts still rate it as a "Moderate Buy," with a strong dividend yield — indicating both cash return and growth potential.
MPLX's business is expanding — investing billions in growth capex and natural gas processing infrastructure, showing that the company isn't resting on its laurels.
This is physical revenue-generating assets, not speculative tech. And that matters.
The Energy Leveraged ETF Play: ERX as a Portfolio Weapon
You don't buy a leveraged ETF like ERX just because it's volatile — you buy it because energy prices and energy stock prices diverge from the market's complacency.
Consider this:
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ERX is already up roughly 50% year-to-date on strong energy momentum.
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That's not random — that's real performance tied to commodity prices, stock valuations in the energy sector, and rotational capital flows.
If oil begins to price in true geopolitical risk — the kind that could push oil back toward $120–$150 (or even $200 in extreme risk scenarios) — then leverage magnifies that move. And the last time we had a physical commodities breakout like that — in gold and silver — the leveraged plays ran parabolic.
Imagine a world where crude trades above $150.
That's not some fanciful imagination — analysts do project those levels if supply routes get threatened or constrained.
A world with geopolitical risk premiums baked into oil prices could send ERX far beyond conventional forecasts.
And remember — returns aren't linear in leveraged instruments. They explode on sustained directional trends.
Oil at $150–$200: Not Crazy — Just What Happens When Physical Reality Bites
Forget Wall Street's polite forecasts. When supply routes get constrained, or when traders believe supply will be constrained — that price moves are already baked in.
In 2007–2008, oil surged above $140 after real Middle East-linked risk premiums hit the market. Analysts point out that those risk factors can carry markets much higher than most people expect — especially when chokepoints like the Strait of Hormuz get threatened.
Today's situation has:
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Actual geopolitical risk in the Middle East.
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Sanctions and constrained supplies globally.
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Central banks holding large inventories.
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Rising demand in emerging markets.
All these factors point to higher structural oil prices, not lower ones.
Even some mainstream forecasts estimate oil surging toward $150 under stress scenarios.
A doubling of oil from current levels isn't a meme — it's possible within the dynamics of geopolitically driven supply constraints.
All Roads Lead Back to Physical Assets
Here's the core takeaway:
Financial markets chase physical scarcity.
When there's real tension around physical supply — whether it's gold and silver, hard commodities, or energy — capital doesn't just trickle in — it floods in, seeking protection and profit.
That's why physical things outperform in times of macro stress and structural shifts.
And that's precisely where we are today:
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Precious metals laid down the first marker.
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Physical energy is writing the next chapter.
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Infrastructure stocks and leveraged energy plays are the leading indicators of this trend.
In this environment, investing in physical things isn't conservative — it's strategic.
It's where real risk meets real reward.
Conclusion: The Next Frontier of Real Assets
Investing isn't about chasing fads.
It's about identifying where true scarcity and value intersect.
Right now, that intersection is:
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Physical assets with real economic function.
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Energy commodities tied to structural global demand.
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Infrastructure that earns cash and captures pricing power.
That's not some fringe thesis. That's the logic that gold believers used to rack up outsized returns the last 2 years. That's the same logic that's now lifting energy exposures like ERX — and that should keep you paying attention to names like MPLX.
When millions of barrels a day flow through choke points that could shut down…
When geopolitical risk premiums dwarf traditional supply forecasts…
When physical demand outstrips sticky supply…
…that's when physical things stop being an investment theme and start being the defining investment era of a generation.
Welcome to it.
Get to the good, green grass first…
The Prophet of Profit,
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