Michael Pento: Credit Breaks First, Then Stocks and Real Estate

Michael Pento warns of unprecedented bubbles in stocks, credit, and real estate, driven by Fed money printing. He outlines a stagflation scenario and his portfolio positioning in T-bills, precious metals, energy/commodities, and utilities. Pento predicts a credit crisis and 50% stock market correction, but remains nervously long using his sector model. - Pento describes three bubbles: stocks, credit, and real estate, all at extreme valuations. - He accuses the Fed of conducting a $40 billion/month undeclared QE program. - Pento expects stagflation to intensify, with interest rates potentially reaching 15%. - He favors T-bills to avoid duration risk and holds precious metals as a hedge. - Pento's portfolio includes commodities, agriculture, uranium, energy, and utilities. - He identifies private credit as the potential epicenter of the next crisis. - Pento forecasts a 50% market correction when the recession and credit crisis hit. - He is hopeful that new Fed chair Kevin Warsh will reduce money printing.