The Julia La Roche Show #299 Michael Pento: Market Warning on Three Record Bubbles, Why the Fed Can't Save Us & Why He's Net Long (For Now)
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Oct 28, 2025 Michael Pento, president of Pento Portfolio Strategies, dives into the precarious state of the economy, highlighting three massive bubbles in stocks, bonds, and real estate. He stresses the importance of active management to navigate these distortions. Pento warns that rising bond yields could trigger a crisis, compounded by inflation rather than traditional insolvency. He also discusses how current Fed policies aim to maintain asset stability, risking long-term consequences. Lastly, he emphasizes gold's emerging role as a protective asset amid these turbulent times.
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Three Concurrent Record Asset Bubbles
- Michael Pento warns three concurrent record bubbles in stocks, bonds, and credit create unprecedented systemic risk.
- He says the Fed is panicking to keep those bubbles inflated despite inflation accelerating above target.
Don't Rely On Passive 60/40
- Do not rely on a static 60/40 buy-and-hold if you lack active risk management.
- Use an active manager or a model that tracks inflation, growth second derivatives, and credit stress.
Crisis Could Be Yield-Driven, Not Just Insolvency
- Next crisis may stem from spiking long-term yields driven by intractable inflation rather than pure insolvency.
- That would limit Fed tools because more inflation can't be solved by creating more inflation.