Two Sides of Every Market Move You Need To Know

How the oil market?s collapse could make you rich or poor

As Newton?s third law states for every action there is an equal and opposite reaction this concept even applies to market forces.? There are certain industries that are crippled by falling oil prices like oil producer and industries that thrive like travel and restaurants.? The biggest challenge for investors these days is deciding when oil prices will recover but in the meantime you can still make some wise investing choices by looking at both sides of the oil equation.

Learn about how the decline of oil impacts you.

Political pluses.?Lower oil prices hurt the economies of some energy-producing U.S. adversaries, particularly Iran, Russia and Venezuela. That could make the world a little safer.

Sagging economies.?Though higher supply is a major reason for oil?s drop,?investor?s worry that persistent declines are a sign of falling demand due to slowing? growth.

When investing you have to weigh all the variables to decide what the best way to make money is with the lowest risk.? The article lists 10 variables of how oil impacts the world economy.? This shows the type of thinking that you have to do to become a successful investor.? The story here is will the benefits of low oil outweigh the costs to keep the economy humming? If you think yes you should buy a travel stock if you think no you should either think about companies to sell short or anchoring your portfolio with stocks to weather an economic downturn.

Read about the pros and cons of today?s oil prices?and start thinking like an investor.

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About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.

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