MarketWatch: “Could rising oil prices tip the U.S. into a recession? Here’s why investors are nowhere near having to worry about it”
By datatrekresearch in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek co-founder Nick Colas:
.... "History shows that surging energy costs usually play a role in tipping the U.S. into recession. When oil prices doubled in September 1990, February 2000, and June 2008, the economy was either in a recession or would shortly be in one, said Nicholas Colas, co-founder of DataTrek Research, in a Tuesday note (see chart below).
“Oil price spikes matter much more than modestly rising prices. Household income is fairly fixed in the near term, so spiking oil or gasoline prices force them to quickly cut back on other spending categories,” Colas said. “The greater the increase, the more likely a recession eventually unfolds"....
Full article here on MarketWatch.
