Michael Pento, president and founder of Pento Portfolio Strategies (PPS), joins Julia La Roche on episode 167 to discuss the current state of the economy and the potential risks ahead.
In this episode, Pento highlights the rising inflation rate, the burden on the middle class, and the unsustainable levels of debt. Pento predicts a slowdown in GDP growth and the possibility of a negative quarter in the second half of the year. He believes that the Federal Reserve will be forced to lower interest rates and engage in quantitative easing to stimulate the economy.
Pento also discusses the potential impact on the housing market, equities, and the bond market. He suggests overweighting energy, base metals, and gold in a stagflationary environment.
Links:
https://pentoport.com/
https://twitter.com/michaelpento
00:00 Intro and welcome Michael Reno
00:54 Macro view, inflation, and the bankrupting of the middle class
4:08 If rates don’t come down the economy is in trouble
5:49 Fed rate cuts ahead this year?
8:00 Market is massively overvalued
9:36 Stagflation and how to invest in that environment
11:32 Home prices
13:50 Why Powell can’t wait to end QT now
15:23 Long-term yields might not come down
16:00 Explosion of rates in high-yield will crush the economy
17:27 Gold
20:00 Erosion of the middle class
#172 John Cochrane On The Fiscal Theory Of The Price Level, Causes Of Inflation, And The Need To Stop Throwing Money Down Trillion-dollar Rat Holes
#171 Dave Friedberg, CEO Of Ohala And Co-Host of The All-In Podcast, On The New Breakthrough Can Boost Crop Yields By 50-100% And Could Change Farming Forever
#170 Bob Elliott: The Biggest Risk For Equity Investors Is The Economy Remains Too Strong
#169 Carol Roth: The Stagflationary Economy Is Making A Resurgence
#168 The ‘Acid Capitalist’ Hugh Hendry On The Fed’s No-Win Situation, The Fragility Of Valuations, Gold As ‘The Alchemy Of Chaos,’ Buying Bitcoin, And The Dangerous Sign The Japanese Yen Is
#166 Nancy Davis: 'Whatever They Say, The Opposite Happens' — Fed Meeting Reaction, Why Inflation Is Here To Stay, And The Opportunity For Investors
#165 Jim Bianco On Stickier Inflation, A 10-20% Chance Of A Rate Hike, And Why The 10-Year Treasury Yield Could Surge To 5-5.5%
#164 Chris Whalen On Higher Interest Rates, Illiquidity, And The Death Of Leverage
#163 Professor Scott Galloway: We're Turning Into Something That's Not Very American
#162 Keith Fitz-Gerald, Investor Who Nailed 2023 Market Rally, Says The Fed Doesn’t Matter — Investing In Optimism Does
#161 Michael Howell On Global Liquidity, A Re-entry Point For Risk Assets, Monetary Inflation, Gold, The US Dollar
#160 Bill Fleckenstein: The Fed Is Trapped And Unable To Fight Inflation
#159 Lyn Alden On Fiscal Dominance Macro Backdrop, Why The Rise In Gold Is Indicative Of Fiscal Problems, And Why Bitcoin Could Hit Six-Figures In This Cycle
#158 Larry McDonald: We’re Entering A Sustained Inflation Regime, Why Trillions Of Dollars Are Currently Misallocated, And The Opportunity Right Now In Hard Assets
#157 Dr. Gary Shilling On The Hidden Flaws In The Economy
#156 Tom McClellan On Why The Recession Is Still Coming And Why The Second Half Of 2024 Could Be Unpleasant For Stocks
#155 Meredith Whitney On The 'Bifurcated' Economy And Consumer, Why It Will 'Pay To Be Patient' For Young Homebuyers, And The Coming 'Silver Tsunami'
#154 Dr. Art Laffer: We Are In The Middle Of A Massive Redistribution Revolution And It's Destroying Growth
#153 Amy Nixon On Inflation Running Hot And Pivoting On The Deflationary Recession Call
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