Another day, another drop in oil prices. Nothing new to see here. Except that at $34.85, the price of a barrel of oil is now within $1 of the closing low it saw at its low of the financial crisis/economic collapse in late 2008.
Below is a look at the ratio of the S&P 500 to oil (or oil priced in S&P 500s) going back to 1983. The price of oil has plummeted as the S&P 500 has remained flat over the last two years. This has pushed the ratio all the way up to 59. At oil’s lows during the financial crisis, this ratio was much, much lower since the S&P 500 was falling just as quickly pretty much.