Those long non-oil stocks (I'm talking direct as possible; I'm not even referring to refiners, which will shoot to the moon if oil falters), should be absolutely cheering for a total break down in crude. At this point, a shoring up of the USD and a collapse in crude oil prices (brent and WTI) will absolutely open the floodgates to new cash into the equity markets.
Imagine what would happen to equity prices if suddenly people find hude oil fields near every big city in US.
One of the reason that both oil and the stock market have gone up is a cheap $USD. Thank you Geenspan and Bernake. If you were to take a look at the run up in the stock market in the last few years it has a clear inverse relationship to the greenback. The same for oil and ever other USD denominated commodity which is every one that I am aware of. And no its not the only reason but just one of the them, regarding oil that is.
i disagree, when oil breaks the market will also sell off. All the earnings growth is by the oil companies and no one is positioned for this.
just cover your oil short and walk away the pain will go away with time spamming every thread on this site wont talk the oil market down
I'm not short oil. I told everyone that before. I don't play in the commodity or currency patches. And fwiw, some of you seem to think the thread title is obvious - look around; there are plenty of people who disagree with you.
lol oil is not going to collapse and the dollar will continue to fall. Paulson, Ben, and Bush aren't worried about the falling dollar because it is actually beneficial to the US economy.