The Family Firm Blog

Oil and Stocks

Posted by Nate Gendelman on 5/21/16 5:34 PM
Nate Gendelman

One trend I have noticed lately is that the strong correlation between stock and oil prices has broken down.

Oil prices have risen in 6 of the past 7 weeks even as stocks have stumbled recently.

US oil production is down significantly, while overseas production has (as usual) experienced several significant hiccups.  Meanwhile, gasoline demand is surging.

Whatever the causes, I am relieved that the stock market's obsession with the price of oil seems to have abated. It is good news that investors (may be??) focusing on the entire scope of issues affecting corporate profitability and the economic landscape rather than one specific market that is subject to numerous unique factors.


 

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