Join our community of smart investors
OPINION

Oil hopes for equities

Oil hopes for equities
February 11, 2022
Oil hopes for equities

A $100 (£72.70) oil price is now a strong possibility. Surprisingly, though, this could be good news for equity investors.

I say so because there has for years been a tendency for oil prices and equities to rise and fall together. Since 2003 there has been a correlation of 0.44 between monthly changes in Brent crude and in the All-Share index, with a 10 per cent monthly rise in the oil price associated on average with the All-Share rising by 1.6 per cent.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in