Opening Statement from the April 2016 Intelligent Investor

Opening Statement from the April 2016 Intelligent Investor

Originally published on April 7, 2016

In past issues (US Stock Market Forecasts) we have discussed the impact of the price collapse from the oil & gas sector on S&P earnings, as well as the trend of greatly reduced capital expenditures from the sector on forward earnings. We have also detailed how disinflation and even mild deflationary forces have weighed on oil & gas earnings and reduced expenditures even further. 

We have also been discussing the impact oil pricing has had on the stock market for several months. With the recent selloff in oil, we might be witnessing the decoupling of this oil-stock market relationship.