Oil Price Drop = Stock Market Drop?

Source: 9gag

The stock market is obsessed with oil prices, with news outlet making end-of-the-world kind headlines every time oil prices start crashing down.
But does falling oil prices really have a positive or negative impact on the stock market?
We dug into the data to find out.

Crude Oil price chart from 1990 to 2020

Source: Macrotrends

S&P500 price chart from 1990 to 2020

Source: Yahoo Finance

Recommended Read: CPF: 4 in 1 Insurance Plan

Conclusion
After looking through the oil crashes from 1990 to 2020 and comparing them against the S&P500 performance, the conclusion we have is: CRUDE OIL PRICE HAS NO CORRELATION TO STOCK MARKET PERFORMANCE!
Crude oil prices and the S&P500 has a correlation value of -0.02, which means neither has an impact on the other.
Furthermore, not all crash in crude oil prices occurred are accompanied by a recession in the US economy.

Dear Reader!
As we progress towards the next phase of our journey, we would like to find out what would make you like us even more.
So we hope you could help us fill in a short survey of 8 questions (4 of them are MCQs) so that we can help better tailor our content to you.
Survey

WSG can provide you with a career coach that is able to help you with that. 

And if you are looking for a free career coach, visit Workforce Singapore via the link below.

They can link you up with the career coach and you 

might be able to find new opportunities on their jobs portal.
Link me up with a coach

Recommended Read: What Should I Invest In This Bear Market?

Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

Have feedback? Tell us now!

Follow us on Facebook and Instagram for more timely updates about finance-related articles and memes! 😁

Subscribe to our newsletter too in case social media platforms decide to stop showing you our content.