09.07.2014 - Would Bursting Asset Bubbles Affect Oil Prices?
The DOW drop below 17,000 has seemed to some a sign that maybe a correction is here. Talk of bubbles in some asset classes is spreading, the potential for less quantitative easing and higher interest rates, and the crying need for profit taking in stocks suggests to some analysts that the equities market will at least pause, possibly pull back notably. As always, there are those that disagree. But, if there is an equities correction, such as a drop of 20%, would that affect oil prices? Two schools of thought exist on this (don’t you hate that?), one suggesting that a bear market on Wall Street would pull down oil prices, the other that oil might become a perceived safe haven, or at least a parking spot, for the cash which institutions would have..........................................Full Article: Source
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