Are Rising Oil Prices Good For The Economy?

The ratio of Oil Stocks to Crude Oil Prices has been a good indicator of trends in the broader stock market. Since June this correlation has been breaking down with implications for both markets.

In a recent article on oil stocks we discussed why these stocks do not necessarily move in lock-step with the price of oil. In short, Oil Stocks are significant components of large stock indexes and as a result tend to move with the big averages regardless of the underlying oil price.

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