Oil and the C and S funds

[clester]

I'm sure someone has done the research so I'm asking which fund is hurt most by oil's drop? C or S

[RealMoneyIssues]

I'm sure someone has done the research so I'm asking which fund is hurt most by oil's drop? C or S

Guessing... C

[felixthecat]

Guessing... C

I agree with RealMoneyIssues...C fund and it shows 1.34 percent decline vs .88 percent decline for S Fund as of a couple of minutes ago. A lot of S&P components have OIL in them Like Chevron, BP and maybe Shell? I cannot recall that. You have a lot of oil drillers that call S&P home as well as construction and services components. Ugh...no wonder the C is getting clobbered. I need to parse the list to get under the characters allowed here. I do have it. :D

[nasa1974]

I don't know about only the C fund. The S fund is getting slapped around pretty good. Not sure why oil price per barrel having such a negative effect on the market. Lower oil means lower pump prices and more money in my pocket for spending somewhere else.

[chpwolf]

I agree with RealMoneyIssues...C fund and it shows 1.34 percent decline vs .88 percent decline for S Fund as of a couple of minutes ago. A lot of S&P components have OIL in them Like Chevron, BP and maybe Shell? I cannot recall that. You have a lot of oil drillers that call S&P home as well as construction and services components. Ugh...no wonder the C is getting clobbered. I need to parse the list to get under the characters allowed here. I do have it. :D
felixthecat: How do you see the C and S fund current prices (e.g. "as of a couple minutes ago." I'd like to look at current prices before making changes, but haven't learned where to check them yet.

Thanks.

[Bullitt]

It's irrelevant.

Everything is being liquidated globally to make up for margin calls in oil markets. We're talking billions of dollars of margin calls. Sell everything, sell gold, sell bonds. It doesn't happen overnight when you're trying to unwind, you try to scale in, but when everyone is scaling in at the same time, the effect is monstrous. Add in the margin calls from those who trade on leverage (which is more people than you could ever imagine) and now everything must be sold.

High oil can mean increased demand (boom times) but less money in people's pockets. Low oil can mean more money in people's pockets but less demand (recession).

There are multiple macro concepts in play beyond corona virus right now. The oil crash had zero to do with corona virus.