Gas prices won’t 'choke' economy until they hit $5 a gallon, investment expert says

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Gas prices won’t 'choke' economy until they hit $5 a gallon, investment expert says
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Gradient Investments President Michael Binger discusses the impact of high gas prices.

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.

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