Australian Investment Blog

Markets generally move from one dominant theme to another and it’s always important to be on top of what’s moving markets at a particular time. I have been amazed that we have recently been bombarded with headlines similar to “oil plunge to hurt world growth”. What they should be saying is “markets are concerned that oil plunge illustrates world economies are slowing” (see chart 4), basically, equity markets are in a negative mood, so for example interest rates lower for longer is getting no headlines. Overall, there this is nothing new, markets move in cycles of positive / negative news interpretation. My economic interpretations of lower oil prices learned from over my +25 years in the markets are: