Oil Down, Good

Monday, October 20, 2014 |

There has been a big fuss made over lower oil prices and they are cratering:

So the logic goes: lower oil prices = less global demand for oil = weaker economy. Makes sense. Except in the US lower oil prices = more cash available for other consumer purchases = stronger economy. And in reality it’s spikes in oil prices, not dives, that correspond with recessions:

Maybe the market is signaling something different this time, but in the past lower prices have been good for the economy and stocks.

SEE IMPORTANT DISCLOSURES IN LINK