MarketWatch: “Here’s why oil prices are another worry for stock-market investors”
By admin_45 in IN THE NEWS
Excerpt from MarketWatch's latest article quoting DataTrek Research: Not all analysts see a risk from oil at current prices. Currently, the U.S. benchmark is trading around $72 per barrel. Nicholas Colas, co-founder of DataTrek Research, said that $100 a barrel — or almost 40% above current prices — was “the start of the warning track.” “Our baseline assumption is that oil prices need to double in a year or less before they trigger a recession,” he wrote. While more expensive oil could become an increasingly strong headwind, Colas noted that it would be positive for the energy sector XLE, an industry that has gained about 4.2% thus far in 2018, in line with the S&P 500. “If energy stocks are ever going to work, now is the time,” he wrote, recommending that investors overweight their positions in the sector in the fourth quarter".... Read the whole article here in MarketWatch!