Posted on 12/12/2014 3:07:28 PM PST by Signalman
Stocks plunged from mid-September through mid-October before staging a sharp rebound that culminated with the Dow hitting a new all-time high just a week ago on the back of a strong U.S. jobs report. Heading into this week, many investors were predicting that the Dow would soon top 18,000 for the first time. But the sharp sell-off in oil has changed all that. Crude prices are now below $58 a barrel, their lowest level in more than five years. Energy stocks have been hit hard as a result.
However, oil stocks were not the only big losers on Friday -- and that could be a sign that investors are growing more nervous about the overall market and weaker global economic demand.
(Excerpt) Read more at money.cnn.com ...
With cheap oil this economy is going to rock.
Beef probably is not a good indicator of dollar or market strength. Regions of the US which are usual suppliers of cattle feed have experienced drought, and cattle growers were forced to downscale herd size. Fewer cows, less beef, more expensive meat.
“With cheap oil this economy is going to rock.”
Lower oil prices are a plus for the economy. The ACA is a big minus. The economic will only boom if the stimulus effect of lower oil prices is greater than the drag caused by higher health care costs. In my situation, the ACA will have a greater impact on household discretionary spending than gasoline prices.
My health insurance premiums will be $400 per month higher in 2015 than they are this year thanks to the ACA. I do not spend $400 per month on gasoline during a month so any benefit from lower oil prices will be insufficient to offset the hit to disposable income due to higher health care costs. In addition, the deductible for my family is now $12,000 per year and the full deductible must be met before I receive a dime from insurance. If we have any serious medical bills during the year I will have even less to spend in the general economy.
According to TD Ameritrade's think or swim platform, the chances of spy touching as low as 185 by March 20 is 1 out of 2, and the chances of spy touching as low as 167 by March 20 is 1 out of 10.
*derp*
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