Michael Pento: Recession Later This Year, Then...Raging Stagflation

He warns that assets remain 40% overvalued & vulnerable given his outlook

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 "wiped out". 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.

All of this makes him very nervous about asset prices — especially stocks and housing, which he estimates are currently 40% above fair value.

To hear how he’s currently positioning his clients’ assets for the road ahead, click here or on the image below:

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Adam’s Notes: Michael Pento (recorded 4.23.24)

Executive Summary:

• Michael warns of an impending debt crisis, citing surging government, consumer and corporate debt levels. US national debt has doubled in in the past decade to $34 trillion, consumer debt has surged to $20 trillion from $15.6 trillion in 2019, while corporate debt has doubled since 2007 to reach $13.7 trillion.

• This is a crisis rooted in bad policy by our monetary and fiscal “leaders”, who continue to sacrifice the middle class in their ham-fisted attempts to keep the status quo continuing.

• As for his economic outlook for 2024, Michael predicts