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About four months ago, it became clear that very low oil prices and much cheaper gasoline were not a good thing for the stock market. Now, the world’s largest commodity and the global indexes are trading in a near lock-step with correlations over 90%. This is close to cats and dogs living together—until you look at it a little closer; then it only seems slightly bizarre. [pullquote align=”full” cite=”” link=”” color=”” class=”” size=””]The most important concept is that of oil as collateral. Borrowing (and lending) for energy has exploded in the last couple decades[/pullquote] For most individuals and many economists, a higher oil price appears as a tax on the consumer because transportation, heating and energy-sensitive food costs represent a meaningful part of the monthly

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