Friday, August 3, 2007

Crude Oil At U.S.$100/Barrel And Stock Markets

The very possibility of crude oil reaching U.S.$100/Barrel sends nervousness among investor class but if history is anything to go by then whenever the crude oil prices have scaled new highs, stock markets across the world have also reached new highs.
Many investors get confused by this phenomenon forgetting that if one asset (crude oil) gets inflated in price terms then people have to invest money somewhere(like in stocks) in order to earn equal or more returns for maintaing their original net-worth.
So dont get scared if oil does that, remain in peace with your good stock investments.