Do you think the price of oil and the stock market are correlated? If not, here is an interesting chart that I put together to prove you wrong.
The blue line going up is the "iPath S&P GSCI Crude Oil Total Return" fund. It basically invests in oil related investments.
The bottom line is the Down Jones Industrials Index. Yes, the same index that I've tossed a modest sum into lately.
As you can see, since the beginning of 2008 there is a strong negative correlation of the two. This graph, while short-term, shows evidence that the price of oil has major influence on U.S. markets.
Thursday, August 07, 2008
Price of Oil and Stock Market
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4 comments:
It's too expensive to drive to ye olde' stock store to pick up some more stocks.
That's why I use the internet. Heard of it?
My first contracting role, during my exit interview from the company, the VP told me the internet was a passing fad. Who am I to disagree?
You haven't talked aboout the pros and cons of the corporate stock plan and the change to paying taxes on the 15% discount up front. I'd be interested to hear your take.
I actually have an opinion on the tax change and will share it with you in the near future. Thanks for reminding me ;)
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