The Julia La Roche Show, Released on 2/14/25

Michael Pento, president and founder of Pento Portfolio Strategies (PPS), joins Julia La Roche on episode 233 where he delivers a stark warning about the state of financial markets. Pento challenges Fed Chair Powell’s recent victory lap on inflation, pointing out that prices have remained above the Fed’s 2% target for nearly four years. He outlines his thesis for what he calls a “triumvirate of bubbles” in equities, real estate, and credit markets, explaining why these interconnected asset bubbles could lead to a market correction of at least 50%. Drawing on his 34 years of experience and proprietary 20-point liquidity model, Pento provides detailed evidence for his concerns while sharing insights on portfolio positioning, the impact of Trump 2.0, and potential solutions to America’s mounting debt crisis.

0:00 Intro and welcome Michael
0:43 Powell’s congressional testimony & inflation criticism
3:02 Fed’s $5T post-COVID liquidity & reverse repo facility
6:43 Warning of market bubbles
7:28 Evidence of equity bubble (Market cap to GDP, price to sales)
10:27 Credit bubble & private credit markets
11:24 Liquidity draining from system
13:08 Trump 2.0 impact on markets
14:37 Analyzing market liquidity (20-point model)
18:21 Future recession & $6T deficit concerns
19:41 Potential silver lining: Market reset
21:10 Fed’s rate cut dilemma
23:10 Treasury gold revaluation discussion
25:56 Solutions to US debt crisis
28:44 Current portfolio strategy
31:51 Critique of passive investment industry
35:00 Closing thoughts & contact information

Michael Pento is a specialist in Austrian economics and is the President of Pento Portfolio Strategies. Prior to starting Pento Portfolio Strategies he served as a senior economist and VP of the managed products division of another well known financial firm. Michael has also created ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE. He is the author of The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market.

  economy, inflation, investing, market crash, stock crash