drmalaka

Will a Drop in Oil Trigger a Market Recovery?

I found the talking head television comments on this hilarous. Morons like those guys will cause the market to go up short term if oil drops but the real question is why? I do not recall the market dropping much between March and June when oil went from 100 to 135. These perma bulls are a joke, oil going up never effected their bullishness but if oil drops it will be bullish for stocks.

This is a moot argument. Who cares if oil drops back to $100, how will that make things better? Right now stock prices do not reflect the reality on the ground based on $130 oil. Companies that have higher input prices and shipping prices have not been killed becuase of the oil rise. To see them go up becuase oil drops would not make sense. So if I get this correct, when oil rises it has no negative effect on stocks but when it drops it is positive for stocks.

Bottom line is that the perma bulls and talking heads need to grasp at anything to keep their thesis alive that things are good. Well they are not. Our rediculous American consumer has gotten himself in a horrible position, he can't afford his house payments, his SUV payments, the gas to put in his gas guzzler, the food to put on his table but yet he is still going to Best Buy and buying new laptops and flat screens. Who is a bigger joke, the talking heads or the American consumer?