Higher Oil Prices Possible Trigger for Recession, According to Top Financial Newsletter Profit Confidential

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Mitchell Clark, contributor to Profit Confidential, says that, while the near-term trading action in the stock market and commodities is mostly positive, he believes that the next recession might caused by higher oil prices.

higher oil prices possible trigger for recession

Higher Oil Prices Possible Trigger for Recession

Oil prices have been trading commensurate with the stock market as a call on economic growth in the U.S. economy. Clark says that higher oil prices reflect a better economic outlook, as speculators bet on better gross domestic product (GDP) growth.

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Mitchell Clark, contributor to Profit Confidential, says that, while the near-term trading action in the stock market and commodities is mostly positive, he believes that the next recession might caused by higher oil prices.

“It’s the perfect catalyst for next year’s slowdown,” says Clark.

Clark notes that oil prices have been trading commensurate with the stock market as a call on economic growth in the U.S. economy. He says that higher oil prices reflect a better economic outlook, as speculators bet on better gross domestic product (GDP) growth in the U.S. market.

“But, higher oil prices also mean higher gasoline prices,” says Clark. “This is inflationary and cuts into consumers’ incomes.”

In his recent Profit Confidential article, The Stock Market & Oil Prices: A Dangerous Duo, Clark outlines his theory.

“It really is the perfect environment for higher oil prices, which is both good and bad for the U.S. economy,” says Clark.

Clark believes there is a slight premium in oil prices today related to tensions with Iran, but he thinks it’s relatively small at $5.00 a barrel.

“Four dollars for a gallon of gas seems like the new norm and gasoline prices could go higher yet throughout the summer,” says Clark.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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