Ever wonder how lately it seems like as geopolitical tensions seem to worsen; the markets don’t seem to notice? Whether it’s terrorism, war or climate change, the world’s major challenges don’t seem to be making much of a dent in the U.S. economy. Have investors become complacent – or are the risks just not all that real for Wall Street? Stuart Schweitzer of JP Morgan Asset & Wealth Management, and David Dietze of Point View Financial Services shed some light on the issue on “Power Lunch” with Bill Griffeth.
It’s all about oil – that’s what Schweitzer says. Even though light sweet crude is ticking up today near $56 per barrel, oil prices are well off their lows and that’s why the market is shrugging off the global instability – particularly the tensions in the Middle East, Schweitzer says. He believes that behind the U.S. bull market, the global economy has been showing some signs of weakness. From an economic standpoint, that weakness could be advanced by oil prices if they continue to fall.