Also in this playlist...
This transcript is automatically generated
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- When it will will list gas price spike stall the stock market rally until that -- when and -- It could I looked to last year what happened keep in mind last year this time last year.
We have oil prices at a 115 dollars a barrel and then we had a reduction.
And demand destruction in oil and the stock market came off quite a bit in the spring yes -- do it at the gauntlet we've got 215 it has just in Britain and America include all I'm -- -- crude oil -- for a while we rally.
-- over a hundred dollars a barrel for a small period of time it.
Somewhere in that range and what happened was that that freight demand destruction oil by the middle of -- was down about eighty dollars a barrel but with that the stock market did.
Come back OK let's suppose we keep oil at a 10506.
In May -- go a little Ohio -- the stock market come down then.
Not as I don't think that's the driver of the stock market right now I think you're bigger things -- the pool rather monitor how the stock market I think really as corporate profits.
When you look at them they've been really good the last two quarters but what's driving corporate profits is wage compensation.
Wage conversation hasn't been lower since world war two and you know aren't today's dollar terms.
So you have the profits in the US are real but were they coming from -- coming at a cost of household income and -- bloated government deficit and stock market doesn't yet the stock much cares only about corporate profits -- -- good the -- -- right but it that can't continue forever we have we household income.
Give me a stock that does well if we hit four dollar gas I like cocktail energy Kodiak oil and gas I know that's got -- the charts.
We're in Kodiak that's why it and you know get a good this -- -- high above high sort of high risk play them what do -- -- it's very volatile and -- enrichment but that they're they're.
Almost olive oil exploration I think that's where the real money is -- -- made but more importantly I think you're gonna see them as a takeover target.
-- PE ratio is astronomical -- analysts would say all this is a great five and 52 times earnings or wherever it happens to be right now but the fact is it's a ripe for the picking from Conoco Exxon or some the other majors Kodiak on in Alaska and company.
-- basic cholera cholera and okay yes all right Larry -- that was interesting we appreciate you bringing it to.
Filter by section