Two Fairy Tales Debunked Again: Oil and Interest Rates
donharrold
www.donharrold.net You are told one thing. The truth is another thing. Make your money with the “another thing”.
JEEBUS! idiot talking heds – 8.25 to 7.5. , DOWN by 63% , UP by 1400 percent , rose from 1031 to 14000 , signal underlying strenght [SIC]
BLAH, BLAH, BLAH!
FOR WELL OVER FOUR YEARS HAVE ASKED JEEBUS LOVIN MERICANS (INCLUDING ENGINEERS, COLLEGE PROFESSORS, BANKERS, ETC) THE FOLLOWING QUESTION – WHAT YEAR WILL PEAK OIL PRODUCTION OCCUR IN THE *UNITED STATES* THAT IS, WHAT YEAR WILL THE TERMINAL DECLINE OF AMERICAN OIL INDUSTRY BEGIN.
NUMBER THAT KNEW? – one
number that looked up answer – zero
im sad. some1 msg me on msn. K
hey look at my profile T
…
with regard to interest rates…
the fed will not raise unless we have a healthy upward moving economy, yes you are right, interest rates rising would signal underlying strenght in the market… but raising rates would not cause the effect.
Don, i agree with most of your posts..
are you suggesting that the market follows oil prices, or that oil prices follow the market? I think our difference in opinion is the cause and effect.
The 80′s and 90′s saw excess supply and thus demand did not have the pricing power it has today. Today we have tight supply, thus demand impacts prices. Oil follows the market, not the other way around.
The only one ‘bloviating’ is you donharrold. You haven’t cited a number, or a chart, or furnished a link to anything supporting your (utterly incorrect) assertion. Also, you’re not very good with numbers, apparently.
Since besides being dumb, you are also lazy, I looked up the numbers for you (again).
1997 to 2007 Dow ROSE from 7784 to 14,000
1997 to 2007 interest rates DROPPED from 8.25 to 7.5.
No correlation, genius. One down, One up.
Dumb AND lazy. Great advisor. Not.
PUNCHPIXIE – See, there you go. Not listening or reading what I said. I said, “…over the last decade…” If I were you, I’d spend more time reading and listening and less time bloviating.
The Prime rate dropped from 14% to 5% between 1982 and 2007.
The Dow Jones Industrial Average rose from 1031 to 14000 in that time.
That is, one went down and the other went up.
They didn’t move “in synch”, even a little. They moved in the opposite direction.
Interest rates went DOWN by 63% in the same time the market went UP by 1400 percent.
WTF are you talking about?
HANIHOTDOG – Your post is more proof that the ability for people to read charts or look at facts is waning daily.
PUNCHPIXIE – LOL. First off, you are wrong. Flat-out wrong. The charts are clear as can be. The market and oil and interest rates all moved in synch over the last decade. It’s so clear that I have to believe you haven’t seen them. As for my “average rate of return,” what does that have to do with oil and interest rates? And, I don’t just “talk.” I walk the walk every day with my members.
Yeah, as many others have pointed out here, the numbers that show price of oil, interest rates (prime), and market don’t agree with your theory.
Also, as someone else pointed out, you need to publish your average rate of return for your investments, and time period.
Without that, talk is just talk.
correct me if i am wrong, but arent oil prices and interest rates inversely related? higher interest rates = higher dollar= more purchasing power for oil=lower oil prices. I could understand his point if he is regarding an increase in oil prices reflecting increased global demand, and thus global growth, but i’m not sure what his reasoning was behind oil higher/market higher.
Do you know why it Was an Illusion?
Just a test.
I believe George Carlin said it best “the table is tilted the game is rigged” if you think you stand a chance listening to the mainstream, Do you want to buy some swamp land? keep up the good work Don!
I can’t see any such relationship. Dow(and all US markets) down, oil up in the last year.
Dow October 2007 almost 14,000
Oil October 2007 $75
Dow October 2008 10,325
Oil October 2008 $96 ish
There are different “interest rates” so I’m not sure which apply. Federal funds rate went down and Dow went down. But other rates have gone up somewhat during the period the dow went down.
In recent weeks though, dow down, oil down.
No consistent correlation I can see here.
noob
I don’t think it’s a bad thing that the market and oil goes down. Lots of things that are considered wealth out there that needs to crash.
Well, I’ll take your no response as meaning your percentile gains are low enough that it isn’t worth paying you money for your advice. I just learned of your website recently and about who you are and what you do. I asked the question because I was genuinely interested in an answer. With your non response, I take that as all the answer I need.
Absolutely, Justice is dead in America. That means we are living in a fascist country with a class living above-the-law.
There should be riots in the streets everywhere until we receive it!!!!
you just now figured that out? what a noob.
That 14,000 was a big illusion. Not to defend Harold here, as the economy is FAR too complicated to label it as such, but that was the case.
Great video, especially the intro music, Don… You are an awesome guitarist.
Are you serious? Interest is the worse practice on the economy so far. Is it good people pay debts because interest rising? Look at housing and the rest of usury practice. Loan=loan, loan does not equal adding interest.
Vote 3rd party!