Oil prices

Works Cited

Alsalman, Zeina, and Ana María Herrera. “Oil Price Shocks And The U.S. Stock Market: Do Sign And Size Matter?.” Energy Journal 36.3 (2015): 171-188. Academic Search Premier. Web. 16 Feb. 2016.

In Oil Price Shocks and the U.S. Stock Market: Do Sign and Size Matter by Zeina Alsalman and Ana Maria Herrera, they are trying to see if the oil prices have an effect on the stock market. The intended audience for this article is people who want to learn more about what causes the changes in the stock market. Every time the stock market is declining, there seems to be a direct correlation to the price of oil. When the cost of oil starts to increase, the stock market always seems to decrease. Since there are many accounts of oil prices having a negative affect on the stock market, it seems like the price of oil would have to have a direct impact on the stock market, but there are several accounts of oil prices having no correlation to the stock market. This is one of the accounts of the oil prices having no affect on the stock market “Similarly, Wei encountered that the oil price shock of 1973-74 had no impact on stock returns” this quote is telling people that the oil prices are not always to blame for the declining stock market. It has also been said that the oil prices can help the stock market “Chen, Roll and Ross and Huang, Masulis and Stoll found no evidence of a negative relationship between prices of oil futures and stock returns.” Even though there are a lot of accounts of the oil prices having a negative affect on the stock market, it doesn’t mean that the oil prices are always going to have a negative affect on the stock market.stock-market-down

http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=5&sid=9a586ea9-8578-4a5a-abbb-e0b5e66aeb5b%40sessionmgr4003&hid=4209

 

Advertisements

One thought on “Oil prices

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s