By SIMON CONSTABLE
The bear market in crude oil prices should have stock investors elated, not disappointed. What’s more, there’s still time to make money.
Prices for Brent UK:LCOX4 the European benchmark, have tanked more than 20% from $115 a barrel on June 19 to less than $91 today, according to data from FactSet.
Cast off any ideas that the slump in the oil market is a reflection of slowing global growth. Apparently, that doesn’t matter.
How do I know? Last month I met with Professor Ben Jacobsen, head of financial markets at Edinburgh University Business School. He gave me a copy of a paper that he and two other economists wrote on the oil market. They based their research on close to three decades of market data. It was published in the Journal of Financial Economics in 2008 and authored by Gerben Driesprong and Benjamin Maat as well as Jacobsen. Read more here.
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