The impact of high oil price

I observe a certain pattern: when oil price and the stocks of oil companies are at their maximum values, it is advisable to be more cautious in assessments regarding further growth of financial markets in general.

Usually, a high oil price serves as an indicator of a potential correction or even a decline in the stock market in the near future.

This happened in 1997-1998, and it happened again in 2008.

No one guarantees a mirror repetition of the situation at present, but a little caution wouldn’t hurt.