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There's at least 35 companies in S&P500 directly related to Oil & Gas (equipment, drilling, distribution, refining etc). While 7% is not "over-represented", but
by HenryTheHorse 11y ago
There's at least 35 companies in S&P500 directly related to Oil & Gas (equipment, drilling, distribution, refining etc). While 7% is not "over-represented", but it's not insignificant either. How would S&P performance look without these 35 companies?
The Guardian actually covered that in a short article last month. http://www.theguardian.com/business/2016/jan/21/oil-prices-stock-market-us-recession-economy http://www.theguardian.com/business/2016/jan/21/oil-prices-s...
- delazeur 11y agoThere are also a number of companies (some in the S&P 500, more of them not), that get all or most of their revenue by providing services to the "obviously" oil & gas companies. You've got large steel and railroad companies, then you've got small contractors providing welders/machinists/millwrights/etc.
- HenryTheHorse 11y agoIndeed. I have personally worked with two such companies that sold equipment and services to oil and mining companies. Both those sectors have been hit hard and their suppliers (esp. ones who had not diversified well) were hit in turn.