Contact Us Disclosures Blog
 
Make an Appointment Contact Us Podcast Blog
Market Commentary Audio Archives Book Shelf InvestAbility Center

It’s All About Oil Prices

February 25, 2011 – 5:59 pm

It certainly feels like a correction and if it is, it should not be over a 2.5 to 3% fall in prices. This is very small. I still expect it to be 5% or more. However, if you have money to invest, and the stocks you have on your watch list to buy have corrected, then maybe you should put the money back to work.

This morning before the opening the first revision of the fourth quarter GDP number came in. It was initially reported at 3.2% growth and now they are saying we only grew at 2.8%. That is old news and will not affect the market much. The focus will be the Middle East and frankly Saudi Arabia. What happens there will dictate oil prices and if oil prices rise stock prices will struggle. The rest of the Middle East will start to calm down in the weeks ahead and that will mean oil prices will start to fall. When that happens stock prices will recover and gold will likely fall.

Regardless what happens in the Middle East it will not disrupt world economic growth. The only exception would be a complete breakdown of the government in Saudi Arabia. I doubt that will happen.

Good Trading
Steve Peasley

Post a Comment