There is a big discussion on whether or not the price of oil will cause the Federal Reserve to accelerate a change in interest rates or not. There has been a lot change since the last Fed meeting in the 3rd quarter. Besides oil prices coming down, the dollar is up 5.3%. Also 800,000 new American jobs have been created. This is a lot of data for the Fed to consider.
The concern that we have is that all the Russian prosperity has been based on oil for the last 6 or 7 years. Putin continues to justify his actions by comparing Russia’s take over of Crimea to Christians trying to take back the Holy Land. Global tensions in Russia, China and Europe, as well as other factors could disrupt US markets.
We’ve seen strong markets for the last six weeks. The question is whether these strong markets will continue as we approach 2015. Oil prices have fallen which puts more money in consumers’ pockets for the holiday season and other countries are putting there money in the US which is helping our strong markets.