The Julia La Roche Show #268 Michael Pento: The Grand Reconciliation Coming - Credit, Stock, and Real Estate Bubbles Will Burst
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Jun 25, 2025 Michael Pento, founder of Pento Portfolio Strategies, shares his insights on upcoming economic turmoil. He warns of a looming 'grand reconciliation' where credit and asset bubbles will collapse. Pento suggests that the U.S. debt situation is dire, predicting staggering deficits during the next recession. He forecasts a change in Fed leadership that could exacerbate the situation by slashing rates. Advocating for hard assets like gold and platinum, he believes their value will skyrocket by 2026, highlighting the urgency for active investment management.
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Grand Reconciliation of Asset Bubbles
- Michael Pento forecasts a "grand reconciliation" where bubbles in business debt, treasury debt, stocks, and real estate will burst during the next recession.
- He predicts the recession won't be mitigated by policy, leading to severe market drops and a crisis triggered by soaring long-term interest rates.
Watch Credit Spreads Closely
- Monitor credit spreads and financial conditions to detect fracturing credit markets early and prepare for recession risks.
- Invest in short-term treasuries and actively manage portfolios to avoid large losses in downturns.
Platinum's Rising Role
- Platinum is more rare and noble than gold and has a strong breakout potential due to undervaluation relative to gold.
- Foreign nations are fleeing the dollar for hard assets like gold and platinum to protect wealth from U.S. sanctions and dollar devaluation.