Thoughtful Money with Adam Taggart Michael Pento: Stocks & Home Prices To Fall 40-50% As Liquidity Dries Up?
Mar 4, 2025
Michael Pento, President of Pento Portfolio Strategies, shares his insights as a savvy money manager using a unique 20-point model. He predicts significant declines in both stock and home prices, attributing this to liquidity concerns and economic uncertainties. Pento discusses the implications of tariffs on growth, the risks of transitioning to stagflation, and the importance of active investment management. He emphasizes gold and cash as safer assets in turbulent markets, while urging caution, especially for those nearing retirement.
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Market Correction Prediction
- Michael Pento predicts a significant market correction.
- He foresees a 50% drop in stocks and a 40% drop in home prices due to a reversion to the mean.
Importance of a Model
- Michael Pento's model guides his investment decisions.
- He emphasizes the importance of having a plan and process, especially in uncertain market conditions.
Friction from Trump's Policies
- Trump's economic policies might cause short-term market friction.
- Despite potential long-term benefits, Pento acknowledges the likelihood of near-term economic disruption.