Gas prices correlation to stock market

A Wealth of Common Sense. Posted October 30, by Ben Carlson. Whenever oil prices make a big move in either direction, there are some fairly standard arguments made given for its effect on the overall stock market.

Thus, economic activity should increase and it should be good for the stock market. If oil rises, the conclusion is that consumers have less to spend so it should hurt economic activity and stock prices.

How does correlation affect the stock market? | Investopedia

Rarely is any actual evidence presented, though. These are more or less intuitive arguments. Here are the price charts going back to the early s:.

There are huge swings from positive gas prices correlation to stock market negative correlation over time. Taking a longer-term view and xing forex the window to three gas prices correlation to stock market smooths things out a bit, but you can see the relationship is still very cyclical:. But as with kymco stock market relationships in the world of finance, nothing is static.

At times they move together in the same direction. Follow me on Twitter: A Wealth of Common Sense is a blog that focuses on wealth management, investments, financial markets and investor psychology. I manage portfolios for institutions and individuals at Ritholtz Wealth Management.

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Correlation between crude oil and stocks has broken down - Business Insider

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Price Of Oil Versus The Stock Market | Seeking Alpha

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