While the answer to this question is one to be told by time my opinion on the matter
is that current oil prices are simply unsustainable.
That doesn’t mean that oil is going to plunge today or tomorrow. Indeed, it could keep rising for quite some time. After all, you cannot make a rational judgment about when irrational behavior will end.
But oil prices will come back down. And that will be positive for both the economy and the stock market.
If you have big profits in your energy stocks, consider paring back. Or at least running your trailing stops closer to better protect your profits.
If you’re skeptical, take a look at the table below that charts oil alongside the housing and Internet bubbles. The parallels are uncanny.
Of course, history never repeats itself exactly the same way. We may not be at the exact inflection point.
{Source Bespoke Investment Group, LLC}
-Walid N. Nasserdeen
