Friday, December 18, 2009

Why isn't the stock market being negatively impacted by higher oil prices?

?Why isn't the stock market being negatively impacted by higher oil prices?
Only in theory is the stock market affected by reality. That assumes informed investors making logical choices. In reality the stock market is uninformed people %26amp; informed people making logical as well as emotional choices. The stock market is just legalized gambling.Why isn't the stock market being negatively impacted by higher oil prices?
Because oil companies are PART of the market, maybe?





Stock prices rise on profitability; unless the oil companies were frittering away their gains, or NONE of them were publically owned, what direction would you EXPECT them to go?
A big part of the reason is because the market is being lifted by energy stocks and other oil related stocks. So the more oil goes up, the more money these companies earn, and the higher their stock prices go.





Another part is many companies pass off their oil costs to the consumer. SInce the US consumer is very strong and resilient, on average, they keep buying products, even at the higher prices.
many factors in the market and the investors can still afford the losses.


certain industries have had lowered profits. any heavily reliant on transport..


airlines trains shipping etc..


many of them saw the rewards of fako war and invested in the evil ,oops, i mean the oil ..

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