Oil & Stocks: Time to Break Up

The corollary dynamic between oil prices and major stock indices is one of the more confounding trends in financial markets right now. This article sums this complicated relationship nicely.

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To expand upon the theme of lower oil prices being a benefit to consumer, it is worth pointing out that two years ago, American consumers were paying $4 per gallon at the pump. Now they are paying $2 per gallon. Therefore, filling up the tank on an SUV has gone from $120 to $60. If you filled up your tank twice a month, that’s an extra $120 in your pocket every month. To borrow from one of the commentators in the article – that’s a lot of Starbucks! (Actually, my illustrious uncle Mal pointed out the gas price/Starbucks trade to me over a year ago. Great call Mal!)