Oil and Stocks Part Ways

Since late-October, stocks and oil have been somewhat correlated. But today, on the day of the Fed meeting, there was a big divergence. Stocks did well while oil did not.

Here’s the chart:

What does it mean? That’s hard to say. Odd relationships can last for a few weeks before breaking up. I suspect that as oil starts to fall, it’s good for stocks. But if it falls too far too fast, then maybe it can harm the economy.

Posted by Eddy Elfenbein on December 16th, 2015 at 10:46 pm

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