Is it time for markets to panic? Gasoline prices are approaching the “danger zone”, Copper prices indicate a more precipitous decline in risk assets, Consumers are clipping coupons at a rate not seen since before the 2007 recession… Warning signs are all over the place!
February 27th, 2013
Report shows gasoline prices could be approaching the “danger zone”
… Watching the Daytona 500 from the “danger zone,” where cars whip by at high speeds of around 175 mph to 200 mph — but can also burst through the walls in a crash — can be a thrill.
But gasoline’s “danger zone” may be just plain scary.
At $3.75, retail gasoline prices are nearly back in the “danger zone” marked by the highs of around $3.85 to $4.10 per gallon seen over the past five years, as you can see in Figure 1. This range has marked a “danger zone” for market participants.
When gasoline prices reached this range in the past, it preceded the stock market slides experienced