You may have escaped the recent hurricane on the East coast of the US, but everyone is going to get hit by the economic storm taking place. Here to talk about this is Michael Pento, who predicted the record high inflation that has been rampant throughout 2022. He explains some of the culprits of the most pressing economic problems today—to which demand destruction and rising nominal interest rates have affected various markets. Tune in to hear more about what’s in store and to get Michael’s firsthand perspective.

-The economic storm taking place is a category 5 and no one seems to be aware of it
-Back in 2021, Michael predicted record high inflation for 2022 and the Fed slamming on the brakes in an extremely weak economy
-The Federal reserve has only raised interest rates by 400-500 points a year twice
-Something in the credit markets is going to have to break for the Fed to come to the rescue
-We have added $3 trillion to household debt to GDP; it is significantly higher than it was in the past
-We’re already above the rate Powell was threatening to take us to
-It’s not just the dollar that’s hurting us; it’s demand destruction
-All bank loans have gone up exponentially, and all debt is hurting the consumer
-With deflation, the real price of gold could go up while the nominal price goes down
-Rising nominal interest rates lead to rising real interest rates
-When real interest rates are rising, you don’t want to go near gold
-Michael doesn’t think energy prices will go down in the short term, but that demand destruction will become so acute in 2023 that prices could go down
-2023 has a huge recession in store
-You stay in power by giving people things for free, but this creates problems

Useful Links:
Financial Survival Network
Pento Portfolio Strategies

Direct download: Michael_Pento_08.Oct.22.mp3
Category:general -- posted at: 8:00am EDT

These are dangerous times in global markets, stock markets, and commodities. Can you make money in a market like this? Chance Finucane comes on the show to discuss this topic; based on past long term bear markets, there’s still a way to go before you should consider hopping back in. Inflation has already peaked, but it is not going to decelerate in the way that the Fed hopes. There are many factors at play in regard to the current market, so tun in for the latest insights.

-What sort of strategy do you implement in this market? The focus is much more on preservation of capital; Chance doesn’t mind increasing liquidity
-Chance might not hop back into the market until sometime next year. Based on analyses of past long term bear markets, there is still a bit of a way to go
-Chance’s company typically invests on behalf of former business owners, and they try to manage the downside so that bonds/portfolios don’t go down too much
-Inflation peaked in June when it got to around 9%
-Inflation is going to decelerate, and will probably stay in the mid-single digit area for longer than you would expect
-There are lots of external factors, especially with oil
-Chance’s company likes the pipeline businesses
-Usually this recessionary environment isn’t good for commodity prices
-We’ve started to see some home price decreases
-People aren’t willing to leave their current home if they own one

Useful Links
Financial Survival Network
Oxbow Advisors

Direct download: Chance_Finucane_10.Oct.22.mp3
Category:general -- posted at: 8:00am EDT






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