Last summer, when markets experienced a correction, so did commodities, specifically oil. The influence oil has on our country and the equity markets has grown substantially over these past couple of years. Whether it is more on a sentiment front, as oil prices rise, consumers and corporations pull back, due to higher prices at the pump (for consumers) and higher input prices for corporations. Or that a fall in oil shows a lack of worldwide demand, which can be seen as a domino leading to slower growth globally, ultimately hurting the equity markets.
Whatever the cause is for the high correlation doesn’t matter much, rather the question now is, how long will this commodity downturn last?
What’s your opinion on this downturn, we are currently seeing gas prices around $3.60 around Atlanta and many consumers watch the correlation between gas and oil. Not to mention, this is an election year, and many consumers believe politicians have an affect on gas prices.
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