The market has continued to reverse a longer term trend of oil rising and stocks falling.

For whatever reason, oil prices took it on the chin again today, down more than $3.50/barrel.  That makes a price drop of $18 or 14% in the last four days.  Prices at the pump should reflect this soon.

While that goes on, Wall Street has continued this relief rally, up 600 points in the last four days.

If I were a betting man, I wouldn't be surprised to see oil continue it's slide.  I feel, like most things, it went up too much too fast.

As far as stocks go, that remains to be seen.  I feel earnings have not fully reflected the overall slowdown in the economy.  This quarters earnings have seen most of the effects of the government stimulous plan. 

Next quarter?  And beyond?  Unless the government is planning on sending out more checks, I have some concerns about future earnings and stock prices.


To find your next home, go to my website anytime. 

Comment balloon 4 commentsKen Tracy • July 22 2008 03:15PM


Ken I hope that you are right and oil will continue to slide back to more normal prices after summer is over. Oil's prices have shot up way too fast to take advantage of the summer time travelers and like real estate oil prices I hope will be cyclical. Being an real estate agent like yourself, I only hope that we can count on real estate being at the very bottom and real estate prices will continue to climb as well. any predictions Ken?

You were into financial planning and or the stock market before you were into real estate werent you? if so what do you contribute to the 600 points gain in the stock market? will this help our economy which is now being described as in a recession?

Oh yeah you mentioned the governments stimulus checks. If youve read my blog here on AR about stimulus checks you would know that the government has been sending out stimulus checks since May and will continue to do so thru the end of this month and into August. This blog sounds like its coming from your past as a financial planner? (Do you or any other agents here on AR read anybody else's blogs? or do you just blog away?)

I just had to leave a more detailed comment on your post after all of the mindless "Good Post" comments that I see on AR that arent worth the 25 points!

Posted by Stephen D White, E-Pro, ABR Cape Cod Real Estate (SDW Realty of Cape Cod) almost 11 years ago

Morning Ken,

The lower oil prices we have seen recently hopefully will be reflected at the pumps soon. It is summertime and many families have altered their plans because of gasoline prices.

As for the DOW, the gains are encouraging, however it is only paper until one buys or sells.

Posted by Harold "Hal" Place (A1 Connection Realty, Inc.) over 10 years ago

Hi Stephen and Hal.  Thanks for stopping by.

Yes I was in financial sales.  So I still watch CNBC.  I will always be interested in the stock markets.

The Dow being up 600 points feels like a small deal to me.  Dead cat bounce, perhaps.


Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) over 10 years ago

Thank God.  WEveryone needs some relief from the prices at the pump.

Posted by Jim Crawford, Jim Crawford Atlanta Best Listing Agents & REALTOR (Crye-Leike REALTORS®) over 10 years ago

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