When you consider the S&P, oil is dirt-cheap

Savita Subramanian, Chief U.S. Equity Strategist at Merrill Lynch says that oil is “extremely undervalued” when considered against the current level of the S&P500. “Last month, the ratio climbed to its highest reading since March 2002. The peak occurred on March 17, when crude retreated to a six-year low of $43.46 a barrel. Yesterday, the indicator was 40 percent above its 30-year average -- displayed in the chart -- even after crude rose 29 percent from its low.” (Source: Bloomberg)


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter