Palm Beach Gardens, FL, January 17, 2015 --(PR.com
)-- Weiss Research study reveals health and technology sectors are expected to benefit most from the recent oil-price decline. In response to the recent collapse of global oil prices, Weiss Research announced its findings based on an extensive study of all major oil-price declines in the past quarter-century, focusing on the two most recent bull markets with major oil-price declines (1990-92 and 1996-98).
In his latest Money and Markets column, Dr. Martin D. Weiss, PhD, founder of Weiss Research, Inc., provided insight into how cheaper energy impacts each of the 10 major industry sectors of the market — focusing on the sectors that benefited the most during the price declines, as well as those that benefited after oil prices reached rock bottom.
During the oil-price decline: According to the Weiss Research study, the three stock sectors that gave investors the best and most consistent performance during the declines included:
Health — up an average of 60 percent
Technology — up an average of 64 percent%, and
Financials — up an average of 45 percent.
3 months after the oil-price bottom: The Weiss study further notes that, three months after oil prices hit rock bottom — and when the benefits of cheaper energy start flowing into the consumer economy — the two stock sectors that gave investors the best and most consistent performance were:
Consumer discretionary — up 13.6 percent, and
Financial stocks— up 8.1 percent (in addition to the previous 45 percent rise).
12 months after the oil-price bottom: Consumer discretionary and technology saw a 24.2 percent and 35.1 percent rise, respectively.
Now, although it is too early to call a bottom in the latest oil price decline, the current pattern confirms that of earlier bull markets, says Weiss. Since crude oil reached a peak last year, the best performing sectors have included health care (up 12.4 percent), technology (up 9.4 percent), consumer staples (up 8.8 percent), financials (up 8.7 percent), and consumer discretionary (up 8.2 percent).
Weiss Research has a history of accurately forecasting the correlation of oil prices and stocks. In the November 11, 2013 edition of Money and Markets, Larry Edelson warned readers that oil prices would plunge below $65 per barrel and then even further to the $50 level. Then, on December 10, 2014, after oil reached $67 per barrel and a big bottom was called by many energy bulls, Edelson declared, “Oil is now hovering just above that first major support level. Once it cracks that, oil will plunge to as low as $40.” And as recently as December 22, 2014, Money and Markets pinpointed precisely when and why the stock market surges when oil prices fall, citing major transfers of wealth as the primary reason.
About Weiss Research:
Weiss Research, Inc., founded in 1971, provides research and analysis designed to empower investors with information and tools to make more informed, financial decisions. In addition, Weiss Research and has a long-standing history of public service.
Weiss Research currently publishes a variety of products including Money and Markets, Mike Larson’s Safe Money Report, Larry Edelson’s Real Wealth Report and Nilus Mattive’s Income Superstars as well as specialized portfolios and trading services.
With over 500,000 active readers, Weiss Research is one of the most widely read investment newsletter publishers in the U.S. It is a founder of the Financial Publishers Association (FiPA) (http://www.financialpublishers.org/) and member of the Specialized Information Publishers Association (SIPA).
For more information, visit the main Weiss Research website at http://www.weissinc.com.
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