03 Dec 2004 Investors’ Moods Improving

The S&P 500 is up 1% so far this week and almost 8% in November.  Perhaps the single most important factor has been the 21% decline in oil prices over the past month.  Both shrinking demand and increasing supplies have contributed to the remarkable drop in prices.  But, still high at $43.00 a barrel, energy costs continue to blunt optimism on the strength of the recovery, causing particular concern in the area of consumer spending.  But recent historical evidence has been very positive.