
OIL VS S&P500 Despite its recent leg up, oil remains very affordable relative to the S&P500, as the oil-to-S&P500 ratio shows. Remember that higher oil prices imply a higher inflation, itself implying higher interest rates, leading to lower valuation multiples. Here is why most assets suffer during an energy spike besides commodity producers. In this context, commodity and commodity producers become the new hedge most portfolio need. $XLE #OOTT