Volatility Defines Markets Right Now

Real Vision: Finance & Investing

Real Vision

Business News, News, Investing, Business

4.1 • 1.1K Ratings

🗓️ 11 March 2022

⏱️ 38 minutes

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Summary

The U.S. Department of Labor reported this morning that the Consumer Price Index increased 7.9% during the 12 months through February, another fresh 40-year high. And that measure doesn’t account for the impact of the Russia-Ukraine war on energy and food commodities. Crude oil prices have backed off 13-year highs on news the United Arab Emirates would support production increases by fellow OPEC members. And wheat futures have also retreated from 14-year highs. The European Central Bank acknowledged the threat of inflation to economic growth by announcing an earlier-than-expected withdrawal of monetary stimulus. Equity markets remain volatile, which can be helpful for options specialists like today’s Daily Briefing guest Imran Lakha. Lakha, the founder of Options Insight, joins Real Vision’s Alfonso Peccatiello to talk about inflation, how central banks plan to address it, and the role cryptocurrency and gold can play in mitigating its effects on investors’ portfolios. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/34A0gRK Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Hi, everybody. Welcome back to the Real Vision Daily briefing. This is Alf speaking. It's Thursday,
0:10.6	the 10th of March 2022. And I'm here, joined today by Imran Laka, who is the founder of options
0:18.2	inside. How Imran, how are you doing? Hey Alf, how are you? Hey, you're good, man.
0:24.4	Late for both of us, but let's let's get this one started. There is a lot to unpack today as well.
0:30.2	So we have equity markets, you know, might lead down on the day. We have bond deals staging
0:35.7	quite a move, especially in Europe, as the ECB surprise markets on the auction site today.
0:41.3	We also have, you know, commodities moving all over the place. As always, we've got to get used
0:45.7	to that apparently. And we have Bitcoin reprising down to. So before we go into each of these asset
0:51.5	classes, I want people to know that you are a pretty broad macro asset class guy, although
0:57.6	your specifics is options. So can you give us a little bit of an overview from a macro option
1:03.2	perspective of how do you see markets today? Sure, sure. So, you know, clearly, you know, the
1:09.7	biggest driver right now is the geopolitics, right? You know, every headline out of Russia is
1:14.7	moving the market by a percent pretty much inequities. So that's the main driver. We obviously
1:21.0	had big hawkish shifts out of all the central banks over the past few months. That's reprised
1:27.3	massively, you know, the rotation between cyclicals, energy and then out of tech and things like
1:32.7	that. It's been a massive theme. But, you know, you had kind of under the surface, you had things
1:37.5	like Europe starting to rally and, you know, potentially the PMI is ticking up in Europe and we
1:42.8	were looking for some outperformance in Europe. And everyone came in kind of consensus long
1:47.6	this year looking for Europe to outperform and maybe the US to underperform and they basically got
1:52.8	caught wrong footed, right? When this Russian crane thing happened, Europe just got absolutely trash.
1:58.5	So, I think we had the biggest outflow, weekly outflow out of European equities ever last week,
2:04.5	something like $7 million. And that was from Bank of America sort of data. And that just shows
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