User 86999

Just How Correlated Are Oil and Equities?

The stats can be deceptive because of the market inefficiencies. When the oil goes up, your local gas stations are raising the prices immediately, but are they reducing it as fast and proportionately when oil goes down? No. So, the net effect is that the future holder speculators are making the money, but the broader economy is not highly correlated to the benefits. So, the stats will be skewed in one direction.