OEF Rapid Review Articles
“In this post we first confirm the positive correlation between stocks and oil prices, noting that it is not just a recent phenomenon. We then investigate the hypothesis that underlying changes in aggregate demand explain the oil-stocks relationship. We find that an underlying demand factor does account for much of the positive relationship, and that if, in addition, we account for shifts in market risk preferences, we can explain still more. However, even with these two factors included, a significant part of the oil-stocks correlation remains unexplained.”
The Brookings Institution
LINK TO THE SOURCE ARTICLE:
Ben Bernanke: The relationship between stocks and oil prices
LINK TO THE SOURCE ARTICLE:
Ben Bernanke: The relationship between stocks and oil prices