Michael Pento, president and founder of Pento Portfolio Strategies (PPS), joins Julia La Roche on episode 187 to discuss a dangerous triumvirate of bubbles in the economy: a real estate bubble, an equity bubble, and a credit bubble. These bubbles have been fueled by 20 years of a negative real Fed funds rate. Pento predicts that these bubbles will burst. He believes that the current situation is very dangerous and could result in a stagflationary environment. Michael also discusses inflation and the erosion of the middle class and the negative implications for the economy.
Links:
https://pentoport.com/
https://twitter.com/michaelpento
0:00 Welcome back Michael Pento
1:11 Macro view, most salient chart
1:55 A triumvirate of dangerous bubbles
4:09 Bubbles bursting
7:14 The market has already priced in rate cuts
9:39 Most dangerous time in the markets?
11:10 Where would we be if the free market could exist?
13:19 Bifurcation of the economy
19:44 America is an insolvent nation
21:30 Headed for stagflation
23:12 Election
24:29 Investing
27:50 Gold
28:30 Inflation
30:00 Erosion of the middle class
35:58 What difference would a Fed cut even make?
34:55 US dollar
41:20 Gold is not an investment
43:30 Any hope?
