World Wide

Recession?

DYI:  For those of you who are following DYI’s Oil Indicator please be aware stock market valuations are so high they have left planet earth!  Low oil/gas prices generally are very positive for equity investors as energy makes the world economies purr like a kitten.  However this time around starting at sky high valuations plus an economy that has been growing for ten years a steep drop for oil and gas could very well be signifying a world wide recession right around the corner.  This being said valuations trump my Oil Indicator.  When valuations are more positive a drop in oil/gas prices – even if that preceded a recession – would produce an excellent time to acquire stocks at lower valuations hence enhanced future returns.

DYI