WTFinance Will 2027 Be The Year of the Market Collapse? Michael Pento
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Oct 5, 2026 
Michael Pento, founder of Pento Portfolio Strategies and author of The Coming Bond Market Collapse, returns for a stark tour of market dangers. They explore rising Treasury yields, inflation, currency collapse, debt, asset bubbles, and why 2027 could bring a major downturn. Pento also discusses AI-fueled valuations, the limits of Treasury buybacks, defensive assets, and the risks facing traditional portfolios.
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Five Forces Driving A Secular Bond Selloff
- Pento attributes structurally higher bond yields to persistent inflation, insolvency, foreign selling, rising global yields, and reduced Federal Reserve purchases.
- Japan’s support has weakened as higher domestic yields undermine the yen carry trade and encourage Treasury selling.
The Fed No Longer Anchors Treasury Yields
- Ending quantitative easing removes a major source of Treasury demand, forcing deficits to attract private buyers.
- Pento argues real buyers may demand yields near 6% rather than accept 5% ten-year Treasuries.
Why Rate Hikes Cannot Fix Supply Inflation
- Rate hikes cannot produce energy, reverse tariffs, or repair refining bottlenecks, yet the Fed uses borrowing costs to suppress demand.
- Pento says earlier money creation helped create today’s inflation, making current policy an indirect remedy for its own excesses.
