Wednesday, August 24, 2016

The "Oil Indicator"

Not to long ago I discussed the Election Indicator, and it's surprising ability to accurately predict the election 86% of the time. Of course that indicator was the stock market which is a barometer of the business economy.


Here is another indicator we heard a lot about this past year.  It's the "Oil Indicator". 
For awhile oil and equities were lock step with each other. In fact if neither line were labeled you'd have a hard time distinguishing between them.



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Then all of a sudden in mid-April things started to change. They started moving in near opposite directions at times since then.

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 It's not exactly clear why they were so closely correlated, and then parted ways.  However it just reinforces not every "indicator" can be accurate 100% of the time.

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