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 significance of profit margins and pricing power for companies in the current economic climate?

How do equity markets respond to inflation trends as described in the text?