Market Dips as Oil Dives: 3 Things to Know

Oil continues to grease the skids for the stock market. Oil prices fell to a seven-year low last week, with the TSX following to the tune of a 4.3% decline. The S&P 500 fared better, declining 3.8%. This highlights the question: is the tail or the dog doing the wagging? Are oil prices dropping in response to market worries, or are markets worried because oil prices are dropping? 
It's a little of both. Falling oil prices are a symptom of worries about growth, most notably in China. At the same time, lower oil prices have been a market driver due to the impact on earnings, most notably for the TSX where the resource sectors comprise 28% of the index. Oil prices have been one of the primary components of recent market volatility and domestic economic weakness, and are likely to remain a key influence on the market moving ahead. Therefore, we'd offer the following three perspectives: 

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