The Big Picture: Stop Blaming Oil!
The Stalwart has recently spotlighted a couple of possible plays on a drop in oil prices, but there's also an alternate view, elucidated by Barry Ritholtz:
Indeed, since October 2002, Oil has doubled, and with it the Nasdaq. The inverse correlation many seem so found of blaming the Market’s woes upon seems to come and go with such irregularity that we hardly find it instructive to quote Oil as the basis for the selling.
“Imagine,” we were recently asked “where the Nasdaq would be if Oil were still at $25 a barrel.” Our answer is “probably a lot lower.” Why? Many of the same factors that have driven Oil higher have also been driving the Nasdaq upwards: Massive government stimulation, ultra-low interest rates, and increasing Globalization.
Always bringing you both sides here at The Stalwart