Main Street and The Middle East

david —  August 30, 2013

Chart of the Day – Crude oil prices on the rise.

The link above from Chart of the Day shows the relationship between crises in the Middle East and recessions in America.  Over the past 50 years Middle East problems have created spikes in oil prices which have coincided or preceded recessions.  The reason is that spikes in oil lead to higher gas prices which takes away purchasing power for other items for the average consumer.  I am not yet thinking that will be the case presently.  However, our job as investors is to be aware and on the lookout for what may happen and react accordingly regaurdless of personal opinion.  From that standpoint the chart is important information for investors to be aware of.