The plunge of oil prices to five-year lows has helped push stocks and high-yield bonds down as well. And the move is unsettling to some financial market participants.
"Overall, the performance of the markets is very worrisome," Krishna Memani, chief investment officer at OppenheimerFunds,
told The Wall Street Journal.
He's especially concerned about the drop of high-yield bonds. The Barclays U.S. Corporate High Yield bond index has racked up a loss of 3.1 percent so far this month.
The S&P 500 index has slid 4.3 percent since hitting a record high Dec. 5.
Stock prices "are getting a little high relative to other [foreign] markets," Dan Morris, global investment strategist at TIAA-CREF Asset Management, told The Journal.
"If we see a correction of as much as 10 percent over the next six months I wouldn’t be shocked." To be sure, that would be "a temporary thing," thanks to U.S. economic strength, he said.
Oil has continued its plummet Monday, sustaining the stock market's correction, despite the fact that falling oil prices are a boon for consumers.
"A month ago lower oil was good, then it became bad, and lately we’ve been trading tick for tick with crude," Matt Maley, an equity strategist at Miller Tabak,
told Bloomberg. "When crude rolled over this morning, we rolled over. People are worried about all of the losses we’ve seen."
January U.S. crude oil futures traded at $56.45 a barrel Monday afternoon, down $1.36 from Friday.
Related Stories:
© 2025 Newsmax Finance. All rights reserved.