Veitmane: Seeing 'Denial Trade' In Markets

The video discusses the challenges central banks face in controlling inflation due to rising oil and food prices, largely influenced by the Russia-Ukraine conflict. It explores market reactions, highlighting a denial phase and psychological impacts. Investment strategies are examined, focusing on commodities and equities amid market volatility. The downturn in earnings and sector-specific risks, particularly in Europe and banks, are analyzed. The impact of high oil prices on the global economy and potential systemic risks from commodity price movements are also addressed.

How do cash buffers of consumers and corporations influence their resilience in the face of economic pressures?

What role do earnings play in navigating through economic downturns, according to the discussion?

Discuss the potential risks associated with parabolic moves in commodities and their impact on the financial system.