The last time crude oil had a huge rally was in 2007. It almost tripled from $51 to $140+. The stock market, however, started sputtering in June 2007 when oil had risen 35+% from the bottom of $51 reached in January 2007.
Move forward a couple of years. Crude oil jumped from $35 in December 2008 to $65 (as of yesterday), a move of almost 86%. The stock market has been sputtering since the beginning of May.
Question. Is rising crude oil prices bad news for the stock market? Does the market peak after six months of rising crude oil prices? Time will tell.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs. I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. George Dagnino, PhD
Editor, since 1977
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