Thoughtful Money with Adam Taggart Michael Pento: Buy & Hold Investors To Get Wiped Out
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Dec 5, 2024 Michael Pento, President of Pento Portfolio Strategies, shares his insights on the perils of traditional investment strategies like buy-and-hold. He emphasizes the need for active management amid current bullish trends and macroeconomic risks. The conversation highlights the significance of the copper-gold ratio as an economic health indicator and critiques the effectiveness of present policies. Pento also discusses rising mortgage rates, consumer behavior shifts, and the implications of investor trends in the housing market, advocating for strategic portfolio adjustments.
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Market Risk
- The current market, artificially constructed, presents a significant risk for buy-and-hold investors.
- Active management is crucial to navigate impending market crashes.
Complacency Danger
- Complacency in investing is dangerous due to decades of Fed intervention.
- A passive investment strategy will likely lead to portfolio losses.
Market Correction
- Current market valuations necessitate a significant correction.
- A 50% drop is likely needed to bring valuations back to historical norms.