That's right. Every time crude oil prices have rises by 50% of the standard deviation over a 50 yr period, the stock market has experienced a full recession. We are breaking into that ceiling currently and with the Nasdaq officially entering a correction, there is a VERY high probability the market will fall much further. While this is just a correlation, and a very tight one at that, the possibility of a direct causation is entirely plausible as oil is a commodity that effects nearly all aspects of our lives. It should be noted that foreign wars aren't the only things driving up prices, inflation has hit record highs with the 2 year treasury being close to matching the 10 yr treasury payout which is a phenomenal event. The only real upside to all of this is that corporate earning seem to be doing fine and the fed can still take actions to address inflation without likely escalading the situation which would not prevent a crash, but reduce the time it occurs. This is not financial advise, but I am hedging against further drops to my portfolio though inverse ETFs or other means to prevent excessive bleeding if a crash is to occur. I am also still heavily invested in commodities such as oil and foods which are likely to keep rising with demand. Best of luck to everyone during these times.
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