stock market impact asset prices

[Xanthia Alysha]

Well a decline in the stock market means your wealth has been diminished. By the quantum of the decline your wealth would decline proportionately. People would feel less inclined to invest in other assets like real estate due to the psychological effect as well as a real cost of a decline in wealth. Gold on the other hand might go up or down and it depends on other factors. If the dollar becomes stronger than oil prices may stay within reason. Only if the dollar becomes weak we could see oil prices escalate.