Excerpt from Barron’s quoting DataTrek co-founder Nick Colas:
…. ““History shows that a 100% increase in oil prices over a year usually triggers a recession (1990, 2000, 2008). We’re not quite there yet, but we are getting closer by the day,” Nicholas Colas, co-founder of DataTrek Research, wrote in a note on Wednesday. The price increases flow through the broader economy in several ways, but one of the most important is that they can pinch household budgets in a hurry…
“Household budgets don’t adapt well to large changes in gas prices and consumers cut back when they spike,” Colas wrote in an email”….
Read the full article here in Barron’s!