Help me understand something. There should be factual answer, I think.
The price of oil continues to drop, which is obviously a bad thing for energy companies, but it’s a good thing, from a cost of goods perspective, for those companies that use oil-related products, such as airlines. It seems that a lot more companies benefit from cheap oil than those that don’t.
There is clearly a glut of oil on the market these days, especially with Iran coming back online, and there’s the whole global slowdown, I’m looking at you China. As a result we can expect oil prices to remain low for quite some time. In the meantime the stock market is dropping almost as fast as the price of oil. Coincidence?
Some news reports try to l ink the broad drop/correction in the US Stock Market to the dropping price of oil, as opposed to the global economic slowdown, which has little to do with the price of oil.
So are investors that worried about a few energy companies, or is the fear of a global recession really what is driving down the stock market?