Michael Pento: The Middle Class Is Getting Destroyed, While Assets Are 40% Overvalued

Adam Taggart | Thoughtful Money, Released on 4/25/24

With the market now expecting less than 2 rate cuts this year — perhaps none at all until next year according to Bank of America — what does that mean for the economy? Can it handle “higher for even longer” interest rates without slowing markedly? Or, even worse, something systemic breaking? And what impact will these higher rates likely have on stock, bonds and other asset prices? To find out, we’re fortunate today to talk with money manager Michael Pento. president of Pento Portfolio Strategies. Michael is “not happy”. He’s very concerned that the crown jewel of our capitalist society, the middle class, is getting “destroyed”. He sees nothing good coming from that. And looking ahead, he sees a disinflationary recession happening in the second half of 2024, to be followed in early to mid-2025 by an era of stagflation more extreme than we’ve ever experienced.

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.

Adam Taggart is the Founder of  Thoughtful Money. He is also Co-Founder and former President of Peak Prosperity. Adam is an experienced Silicon Valley internet executive and Stanford MBA. Prior to partnering with Chris Martenson (Adam was General Manager of our earlier site, ChrisMartenson.com), he was a Vice President at Yahoo!, a company he served for nine years. Before that, he did the ‘startup thing’ (mySimon.com, sold to CNET in 2001). As a fresh-faced graduate from Brown University in the early 1990s, Adam got a first-hand look at all that was broken with Wall Street as an investment banking analyst for Merrill Lynch. Most importantly, he’s a devoted husband and dad.

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