Why oil and stocks are trading in lockstep
This article talks about how the price of oil and the stock market are acting the same, when the price of oil decreases so does the stock market. it talks about how the price of oil fell to $26.55 a barrel and that same day the S&P 500 slumped 1.17%. then the fallowing day oil increased to $29.53 and the S&P closed at a higher price. I chose this article because oil prices have been in the news a lot the last couple of weeks and i thought the connection between oil prices and the stock market was interesting.
Link: http://finance.yahoo.com/news/why-oil-and-stocks-are-trading-in-lockstep-134657492.html
This is definitely an interesting observation and I would really like to learn more about why that trend exists, and how representative it is of the health of the stock market as a whole.
ReplyDeleteThis article is interesting in how the last week this has been a common trend However, the oil prices have been decreasing for quite some time, more than just this year. It is interesting to look back a few months to see if this is still the case, or if it is just the start of the year.
ReplyDeleteI agree with Jamie's point. This has been a recent trend but it would be very interesting to full delve into past causes and ramifications each market, oil and stock, have on each other in the long term.
ReplyDeleteWhy is the economy not benefiting from these extremely low oil prices like it has in the past? It seems that the losses from lower fuel prices are greater and happening more quickly than expected. While the benefits from the low oil prices are not showing as prominently as they have in the past.
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