Maleeha Bengali is CEO of MB Commodities Capital, based in London.
Recent Articles By The Author
The fate of the broader equity market lies in the hands of the bond market.
For now, they have achieved their objective, showing President Biden firmly who is in charge.
Those blindly chasing the reflation trade tick for tick, better pay heed to physical market fundamentals.
With new liquidity about to pour in, it remains to be seen how will it affect equities, risk assets, and more importantly, money markets.
The macro tailwind only works for the oil market until physical market dynamics take over. When they do, unwinds can be sharp and painful.
This seems awfully similar to the 2000 tech boom when everyone was a genius being long. What could possibly go wrong?