Like Oil and Water… ?

Posted: December 10, 2009 in Technology and Business
Not sure anyone noticed but oil has gotten whacked over the last few weeks (actually touched the 60’s today)… while the Dow has hung in there… meaning the weird relationship between the price of oil and the Dow has gotten, well, a little less weird.
 
I may be the only one in the country, but I think lower oil prices means people have more money to spend… and that fuels corporate earnings (not just for the U.S. but abroad, too, since we’re the world’s best customer)… and that drives stock prices higher.

I’ve said it before and I’ll say it again:  Lots of measures are important… but nothing trumps the price of oil… it affects everything… for example, with short-term oil coming down, watch consumer sentiment magically improve in the following month or two.

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