Michael Pento | TalkMarkets | Page 2
President and Founder of Pento Portfolio Strategies
Phone: 732-772-9500
Michael Pento is the President and Founder of Pento Portfolio Strategies (PPS). PPS is a Registered Investment Advisory Firm that provides money management services and research for individual and institutional clients. Michael is a well-established ...more

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A Hawkish Pivot
This latest bear-market bounce was predicated on good seasonality, the hopes for a typical mid-term election boost, and the rumors of a Fed pivot.
Rising Rates To Crash The Overleveraged Economy
The effective overnight interbank lending rate is now 3.08%. It was just 0% a little over six months ago.
Inflation Peaks During Recessions
Yes, inflation has peaked; but it always does in a recession. And that has never been a good time to buy stocks.
Powell’s Put: Out Of Money And Time
There is no time in history that compares with today’s record-high inflation and overvalued stock, fixed income, and real estate markets. 
Peak Inflation Is Not The Issue
The economic contraction should soon cause inflation to roll over along with bond yields, but that isn’t necessarily indicative of a new bull market.
Recession Question Answered
Whether or not we will have a recession is no longer a question. The recession is already here. The only question is, how deep the recession will become.
Sell The Bear-Market Bounce
Bear market bounces are violent yet short-lived. The latest reasoning for an oversold rally was provided by JP Morgan's Jamie Dimon. The bank's CEO stated that the US economy remains strong despite gathering storm clouds.
Powell’s Crash Landing
Mr. Powell and the Fed cannot turn dovish imminently. Nevertheless, Wall Street is still hoping that the Fed put is nigh.
Perma-Bulloney
The economy is so weak right now that it only took one, 25 bp rate hike to invert the 10-2 yield spread.
Fade The Post Rate Hike Rally
The recent stock market rally is a trap. This is because Wall Street is vastly underestimating how hawkish the Federal Reserve will have to get in order to fight inflation.
A Recession Unlike Any Other
The U.S. economy is already deteriorating due to the humongous fiscal and monetary cliffs.
Powell The Pivoter Cannot Now Pivot Back To A Dove
The current Fed Chair is perhaps best known for his quick pivots from hawkish back to dovish and vice versa.
Interest Rate Normalization Is Impossible
The simple truth is interest rate normalization would render the U.S. an insolvent nation.
The Demand Shock Of 2022
Inflation is all the rage right now. However, the turning of the calendar will bring about a fiscal and monetary cliff that should engender a significant asset price correction. This will produce a demand shock that lowers CPI and reduces GDP growth.
Fed To Taper Into Weakening Economy
Fed Chair Jerome Powell will soon announce the date for tapering its record-setting QE program, despite weakening jobs data.
The Great Deflation Of 2022
Inflation is all about the destruction of confidence in a fiat currency’s purchasing power.
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