It took longer than I thought, but the ongoing collapse of oil prices is finally hitting stocks- today being the first time that a broad - based sell-off in stocks can be directly attributed to the crash in oil. So, a few questions - can oil stop crashing and what happens if it doesn't?
First, it depends on how risky your portfolio is at present. Do you have a lot of high 'beta' names - then you might be in for a bumpy short term road. If you own energy companies, you'll see some deep red in your portfolio as well. However, I do believe it's a long term buying opportunity. The world is still expanding in population and oil is a finite resource - so the price must go up in the long run. Stay with stocks if your time horizon is 10+ years - don't blink.
First, it depends on how risky your portfolio is at present. Do you have a lot of high 'beta' names - then you might be in for a bumpy short term road. If you own energy companies, you'll see some deep red in your portfolio as well. However, I do believe it's a long term buying opportunity. The world is still expanding in population and oil is a finite resource - so the price must go up in the long run. Stay with stocks if your time horizon is 10+ years - don't blink.