Medley Global Advisors: Risks of Inflation Have Not Dissipated

The video discusses the dynamics of WTI and oil markets, highlighting the concept of backwardation and its impact on market trends. It explores how inflation affects equity markets and consumer spending, noting the challenges of rising costs and declining real income. Despite these challenges, companies with strong pricing power may see improved profit margins, which could fuel future market earnings.

What is the term used to describe a market condition where future prices are lower than current prices?

• Contango

• Deflation

• Backwardation

• Inflation

How does peak inflation affect market trading according to the transcript?

• It results in lower oil prices

• It leads to increased consumer spending

• It causes market volatility

• It stabilizes the market

What is one negative effect of inflation on consumers mentioned in the transcript?

• Reduced consumer spending

• Higher real income

• Lower product prices

• Increased savings

What positive impact does inflation have on companies, as discussed in the transcript?

• Reduced competition

• Lower production costs

• Improved pricing power

• Decreased profit margins

According to the transcript, what is fueling the equity market despite higher inflation?

• Increased consumer spending

• Improved earnings outlook

• Lower oil prices

• Stable interest rates