Michael Pento, president and founder of Pento Portfolio Strategies (PPS), joins Julia La Roche for episode 299. Pento continues to warn of three unprecedented asset bubbles in stocks, bonds, and credit existing concurrently. Despite being net long and up handsomely this year, he emphasizes the critical need for active management. Pento explains why the next crisis will likely stem from spiking bond yields and intractable inflation rather than insolvency alone, making traditional Fed interventions ineffective. He argues that any meaningful correction would be catastrophic given the massive scale of current distortions, while the Fed desperately tries to keep bubbles inflated through rate cuts and resumed quantitative easing. This episode is brought to you by VanEck. Learn more about the VanEck Rare Earth and Strategic Metals ETF: http://vaneck.com/REMXJulia This episode is brought to you by Monetary Metals. Learn more: https://monetary-metals.com/julia Links: https://pentoport.com/ https://twitter.com/michaelpento 0:00 Intro and welcome back Michael Pento 0:59 Big picture macro view 1:38 Three unprecedented asset bubbles: Stocks, bonds, and credit 3:38 Inflation accelerating 4:01 Fed panicking to keep the bubble going 6:56 Are you nervous being net long the market? 8:35 The next crisis will be different - Stagflation risk 9:43 Bond market revolt scenario 12:28 Magnificent Seven concentration risk 14:15 Government shutdown and lack of economic data 16:19 Treasury issuance and bond market dynamics 18:42 Federal budget deficit concerns 20:33 Fed's balance sheet and quantitative tightening ending 24:18 Bifurcated economy 36:45 Political pressure on the Fed 38:50 Trump's economic policies and inflation risks 40:33 Tariffs and their inflationary impact 46:23 What keeps Michael up at night? 47:50 The great reconciliation of asset prices coming 49:02 Where to find Michael's work - Pento Portfolio Strategies 50:10 Closing thoughts
