Cheap energy means cheap everything. In the long run it’s fantastic for the economy.
It’s good for:
- low income voters that don’t own stock
- elderly on fixed income or low exposure to stock market
- traders like me that (tip - DWT was $5 a few weeks ago, probably $14 tomorrow)
>>>Cheap energy means cheap everything. In the long run it’s fantastic for the economy.
Yes but it can cause some serious short-term pain. Manufacturing went into recession when oil prices dropped in 2014- 2016. Less need for machinery and oil country tubular goods.
https://fred.stlouisfed.org/series/INDPRO#
US GDP growth rate also slowed considerably during that period.
https://fred.stlouisfed.org/series/GDPC1#0