Seems everyone all ready knows the results. A strong stock market means much higher oil. As long as the fed keeps propping up the market food and energy are going higher. Had the fed just let the market work this out I'm sure the stock market would be much lower along with oil.
It is strange that market is going up even though oil futures are soaring . Raising oil price is going to hurt everyone from business to consumer.
I find not much strange about it. Crude went from $30 to $120 while the SP500 went from 950 to 1400 in the last five years. There is little evidence that they would be negatively (or positively) correlated.
Oil went up 4 times where as SP500 did not even doubled during that time. So dont you think the raising oil did put some pressure on SP500 companies ?
What I think matters very little. All that matters are statistical facts. I don't see any historical statistical relationship between % change in crude oil and SP500 performance:
Nice chart but Oil price does put pressure on any business/consumer. If you see very long term chart of any instrument , it wont show any of those big downturns as they get adjusted with time. Can you see the big downturn during the 9/11 time on a long term dow chart? If the oil keeps going up like this, it will be a problem for any consumer.