Most people understand the pain of paying higher gas prices because of the immediate financial burden. However, as a recent post on the
Equifax Personal Finance Blog points out, higher gas prices can lead to increases in food costs and pretty much anything that has to be shipped. Even though gas has become more reasonable recently, it still affects the economy in a number of ways.
In “
How Rising Oil and Gas Prices Might Affect Your Portfolio,” financial advisor Roger Wohlner examines how gas prices could help or hurt investments, depending on where you’ve put your money. He explains that major oil companies and funds or ETFs that have energy-related stocks are doing well.
As far as housing goes, the gas prices may help or hurt the market depending on the situation. If potential homebuyers are are paying more for daily expenses, investing in a new home or upgrading their current one may seem too risky. The increased daily expenses may encourage some buyers to look for residencies closer to work. Of course, some may simply see the gas prices as temporary and ignore their effects completely.
For more information from Wohlner on the impact of gas prices, visit the
