Saturday, November 29, 2014

A Strong Dollar and A Weak Oil Price Could Trigger a Stock Market Melt-Up

#Energy U.S. equities could well outperform the rest of the world on the expectation that the U.S. is about to surpass Saudi Arabia as the globe's largest oil producer. Miracle of miracles never to be dreamed of until today. And OPEC, which quadrupled oil prices in 1973 and threw the world into a deep recession has seemed to incredibly abandon its cartel power. This benign scenario is the combined result of cheap oil reducing inflation to near zero. That would mean a longer period of zero interest rates, benefiting stocks over bonds, as the pressure on central banks to raise rates more or less evaporates. In the meantime a stronger dollar means emerging market stocks will be weaker than U.S. stocks.http://www.forbes.com/sites/robertlenzner/2014/11/29/a-strong-dollar-and-weak-oil-prices-could-trigger-a-stock-market-melt-up/ http://bit.ly/15KdByZ

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