CNBC: “Spiking oil prices have led to recessions in the past, and that’s why the stock market is on edge”
By datatrekresearch in IN THE NEWS
Excerpt from CNBC quoting DataTrek's Nick Colas:
.... "Nicholas Colas, co-founder of DataTrek Research, thinks crude has a steep hill to climb before it becomes a recessionary risk that could topple the current bull market.
“The magic number is 90%. When oil prices go up 90% over a 10-to-12-month period, the U.S. has a recession,” he said. “You go through all those time frames, oil was up 90% or more, and in each of them we had a recession.”
But Colas thinks investors should remain vigilant on oil for the time being.
“We shouldn’t be complacent,” he said. “If oil starts to move towards $100 per barrel, you’ve got a problem. Period. There’s nothing good about that. Unless the U.S. economy is rip-roaring, which I don’t think anybody expects it to do, we should keep watching oil"....
Read the full article here on CNBC!
