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Affluent Investor | April 27, 2017

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AboutMichael Pento, Author at Affluent Investor

Michael Pento

Michael Pento

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 specialist in markets and economics and a regular guest on CNBC, CNN, Bloomberg, FOX Business News and other international media outlets. His market analysis can also be read in most major financial publications, including the Wall Street Journal. He also acts as a Financial Columnist for Forbes, Contributor to thestreet.com and is a blogger at the Huffington Post. Prior to starting PPS, Michael served as a senior economist and vice president of the managed products division of Euro Pacific Capital. There, he also led an external sales division that marketed their managed products to outside broker-dealers and registered investment advisors. Additionally, Michael has worked at an investment advisory firm where he helped create ETFs and UITs that were sold throughout Wall Street. Earlier in his career he spent two years on the floor of the New York Stock Exchange. He has carried series 7, 63, 65, 55 and Life and Health Insurance Licenses. Michael Pento graduated from Rowan University in 1991.

Posts By Michael Pento

December 21, 2016 |

Yuan’s Day of Reckoning

China’s economy and markets have been defying the laws of economics since 2009. Amid a worldwide financial crisis during that year, they managed to grow their economy by 8.7%. But that growth was fueled by a $586 billion dollar government … Read More

December 2, 2016 |

Will Trump Bring Morning or Mourning in America?

On election night, as political analysts were coming to terms with the possibility of a Trump presidency, the Dow Jones futures plummeted over 800 points, and Japan’s benchmark Nikkei 225 plunged more than 6.1%. Investors across … Read More

November 18, 2016 |

Trump’s Mandate to Yellen: Print More Money or You’re Fired!

What kind of President will Donald Trump be? Will he restore America to its former position of greatness, or end up being feckless like a long list of his predecessors? That is yet to be determined.

However, what is clear … Read More

November 10, 2016 |

Q3 GDP was Hogwash

Since most everyone is focused on the upcoming U.S. elections, many investors may not have had the time to peel back the onion on the third quarter U.S. GDP report. So, if you just glanced at the headline GDP number … Read More

November 7, 2016 |

Government Stimulus is an Oxymoron

The accumulation of debt, at its very essence, is simply borrowing consumption from the future. And this is true on any level of debt, be it either public or private. Just as savings is deferred consumption, the exact opposite … Read More

October 26, 2016 |

Equity Bubble Has Run Out of Excuses and Time

It is finally going to be a make or break earnings season for stocks. This is because the justification for record high stock prices that have been perched atop extremely stretched valuation metrics has been the following false assumptions: … Read More

October 14, 2016 |

Yellen Admits Fed Can’t Spot Bubbles, Then Tells Us There’s No Bubble

Fed Head Janet Yellen is keeping alive the tradition of her predecessors, Messrs. Greenspan and Bernanke, by showing she is equally as blind-sighted to the bubbles central banks are blowing in the bond and equity markets. During her September … Read More

October 10, 2016 |

The Free Market Always Prevails

The global securities market got a surprise recently when U.S. core consumer price inflation crept up to 2.3% year over year in the month of August. This closely followed core measure, which strips out the more volatile food and energy … Read More

September 20, 2016 |

King of Debt vs. Queen of Deficits

The Congressional Budget Office (CBO) estimates the total deficit for fiscal 2016 will be $590 billion. This is $152 billion (34%) greater than the shortfall posted in fiscal year 2015. And by 2026 the deficit would be considerably larger as … Read More

September 14, 2016 |

Why the Greater Recession will be Dollar Bearish

The Great Recession of 2008 provided markets with an interesting irony: As the US economy was collapsing under the weight of crumbling home prices, investors curiously flocked to the US dollar under the guise of “The Safety Trade.”

September 2, 2016 |

Sacrificed to the Inflation Gods

Our Federal Reserve is composed of labor market economists who place their faith in the theory that inflation is spawned from too many people working. They believe there is a trade-off between employment and prices, where price stability and full … Read More

August 11, 2016 |

Greenspan Gets One Right: Here Comes Stagflation

In a recent interview, former U.S. Federal Reserve Chairman Alan Greenspan (the “Maestro”) warned that the economy was experiencing, “the early signs of stagflation.” This is a very rare occasion where Mr. Greenspan and I are actually in agreement. I … Read More

August 9, 2016 |

Were the Good Jobs Numbers Cooked?

The real (unadjusted number) for Non-Farm Payrolls was a drop of 1,030,000 in July and last year that drop was 943,000. Therefore, I question the BLS seasonally adjusted data of an increase of a 255,000. Also, there were over … Read More

August 1, 2016 |

Japan’s Lemming Syndrome

The financial world is buzzing about former Fed chairman Ben Bernanke’s recent trip to Japan, where he advised Japan’s central bank chief Haruhiko Kuroda on how to manage his nation out of multi-decades of stagnant growth. Channeling economist Milton Friedman, … Read More

July 19, 2016 |

These Four Numbers Show Stocks and Bonds at Nosebleed Valuations

The S&P 500 is trading near an all-time record high. But investors should not take this as the all clear signal. According to most indicators, the market is now more overvalued than ever before.

The Cyclically Adjusted Price to … Read More

July 18, 2016 |

Ready or Not the Recession May Have Already Arrived

While investors have been focused on the perennial failed hope for a second-half economic recovery, they have been missing the most salient point: the U.S. most likely entered into a recession at the end of last quarter.

That’s right, … Read More

July 13, 2016 |

ECB and BOJ Now Trapped in Endless Printing

The Fed was able to end its massive $3.7 trillion series of Quantitative Easing campaigns without the stock market and economy falling apart. The end of QE 3, in October of 2014, did cause temporary turmoil in the major … Read More

July 1, 2016 |

Insanity Definition on Full Display

Wells Fargo recently announced a new mortgage product they are calling “A game changer in the industry.” According to the bank, this product is purported to facilitate the dream of homeownership to more people by …wait for it… lowering the … Read More

June 10, 2016 |

Fed’s Rate Normalization Will Be Far From Normal

The Fed traditionally embarks on an interest rate tightening cycle when inflation has started to run hot. This decline in the purchasing power of the dollar will nearly always manifest itself in: above trend nominal GDP, rising long-term interest rates … Read More

June 8, 2016 |

Real Estate Bubble Part II

It shouldn’t be hard to understand that nearly 90 months of ZIRP has regenerated the equity and real estate bubbles that first pushed the global economy off a cliff back in 2007. In fact, the Fed’s unprecedented foray with … Read More

June 3, 2016 |

Will the Fed be Blind Sided by Stagflation?

Most Central Bank watchers know that our Federal Reserve has a dual mandate of stable prices in the context of maximum employment. But its use of the words “stable and maximum” is somewhat misleading. For instance, one would assume … Read More

May 25, 2016 |

Central Bank Inflation Targets: Be Careful What You Wish For

Did you ever ask yourself what this central bank obsession with inflation is really all about? After all, it is highly ironic that these erstwhile stewards of price stability have now perversely morphed into the frantic pursuit of currency destruction. … Read More

May 17, 2016 |

Why Puerto Rico Defaulted and Greece Did Not

The Caribbean island of Puerto Rico is in the throes of a debt crisis that recently reached a breaking point when it missed a $422 million bond payment due May 2nd. When asked in a subsequent interview about the likelihood … Read More

May 13, 2016 |

Japan: An Economy of Zeros

The red sun on the flag of Japan symbolizes its position as the land of the rising sun. However, during WWII that round shape was pejoratively referred to as a zero. And now, since Japans economy is emitting so … Read More

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