CNBC: “Spiking oil prices have led to recessions in the past, and that’s why the stock market is on edge”By admin_45 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!