JP Morgan's stock guru says oil won't hurt stocks until it hits $80

JP Morgan's chief quant Marko Kolanovic said rising oil prices should not hurt the stock market until it reaches $80 to $85 per barrel.

Marko Kolanovic, global head of macro quantitative and derivatives strategy, said when oil prices are stable, oil correlates positively with the S&P 500, but when there are large price increases, the correlation weakens and becomes negative.futures settled at $62.90 per barrel, up 14.8% in afternoon trading following the attack Saturday on Saudi Aramco facilities, knocking out more than half of Saudi Arabia's oil production. Oil had its best day since December, 2008.

He also sees both oil and natural gas prices moving higher, and that should drive energy stocks higher, accelerating a trend into value stocks.

This market is artificially inflated. It should be much lower give geopolitical and economy data. It is waiting for a wing and a prayer from the Fed.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Australia stocks set to trade little changed; oil prices spike 13% after attacks on Saudi oil productionInvestors will watch for market reaction in shares of oil companies across the region on Monday, following a surge in crude prices after drone attacks hit Saudi oil supply. A spike just in time for the IPO ... how convenient. Just the beginning. $100 oil coming. Billions to be made in this IPO.
Source: CNBC - 🏆 12. / 72 Read more »