Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time 4 Your Money. We’re joined by John Nelson, financial planner at NelsonCorp Wealth Management and welcome back, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
So rising oil prices often capture people’s attention. So what does the information say about our current situation?
John Nelson:
Yes, it certainly does, and oil prices can have a significant impact on the economy as a whole, which I think it gathers a lot of attention from that. So the graphic I have with me today just helps us illustrate a little bit about looking at it, not just from the price itself, but a rate of change perspective year by year. And this is dating back all the way to the 1980s. And what we’re seeing here is spikes in the chart at particular times the late nineties to early two thousands, again in oh ’08, ’09, and more recently, in the first quarter of 2020, the Covid pandemic. And oftentimes that can be an indication of a recession. The good news is we are nowhere near those levels today. Things have remained fairly significantly below that red dotted line, but oil prices overall is one key metric that we follow very carefully.
Brandy Auterson-Hurst:
Okay, so does this mean investors can ignore oil prices for now?
John Nelson:
I don’t know if I’d ignore them entirely. I think right now we’re, like I said, still quite a ways off where they’re not a real concern here in the short term, but watching that, seeing any changes in terms of affecting consumer spending or inflation, things of that nature, that’s definitely our focus and what we would recommend for viewers out there and investors to do the same. But given the levels we are currently at, we’re not seeing this being a significant indicator in the near term.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on OurQuadCities.com.
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.