Ken's Naperville Real Estate Blog : WHILE OIL CONTINUES TO FALL, THE STOCK MARKET HAS GIVEN BACK MOST OF THE RALLY

WHILE OIL CONTINUES TO FALL, THE STOCK MARKET HAS GIVEN BACK MOST OF THE RALLY

Last week I wrote about the rally we have seen in the stock market.  At the time, oil had dropped $18 to $129 per barrel, and the Dow 30 was up 600 points in just 4 days.

I felt at the time that the stock market was up in a relief rally, celebrating the pull back in oil.

Well, oil has continued to fall, while the stock market rally has lost it's steam.

Oil is currently trading at $124 per barrel, while the Dow is currently trading at 11180, off 400 points from it's recent high.

What's going on?  Who knows, I am just a Realtor!!!:)

But I have a guess.

Oil is still too high.  It will settle out around $70 per barrel sometime in the next two years.

As far as the stock market, if you are a long term investor (and you should be), then you should be dollar cost averaging into diversified mutual funds.  Over time, the markets will reward you for your patience.

Ken

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

Comment balloon 9 commentsKen Tracy • July 28 2008 01:35PM

Comments

Ken - I hope clients in your area can appreciate the knowledge and insight you are providing on the financial services world.  Especially with your background.  Keep it up!

Posted by Mark Organek, On a journey to accomplish one huge goal. (And the United States of America) almost 10 years ago

Oil is still too high.  It will settle out around $70 per barrel sometime in the next two years.

I hope you're right!  I'm no expert, but China and India are both increasing demand.  How about we review this in two years?  My guess is that we're looking at $100+ in 2010.

Posted by Anonymous almost 10 years ago

Sorry.  That was me.

Posted by Not Yet Licensed almost 10 years ago

Hi Mark and NYL.  Thanks for stopping by.

We shall see.  Oil broke out a few years back and will need to retest those lows!

Ken

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

Ken:  I love your optimism and hope it is true.

Posted by Kevin O'Shea, White Plains, NY Real Estate (Coldwell Banker) almost 10 years ago

We need more energy.  We need to use everything available.  Drill for more.  Build nuclear power plants and also sun and wind is fine with me.

Posted by John Walters, Licensed in Louisiana (Frank Rubi Real Estate) almost 10 years ago

Hi John and Kevin.  Thanks for stopping by.

More energy sounds great. 

Ken

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

Morning Ken,

Good to have you back. Oil prices are lower however we haven't seen it at the pump yet. The market will come back, it always does. We just have to be patient.

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

Hi Hal.  Good morning.  If you haven't seen the prices at the pump drop, you will soon.  Not much yet. 

Ken

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

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