#412 Michael Pento: 2027 Will Be a Very Difficult Year – Here's Why

Michael Pento, president and founder of Pento Portfolio Strategies (PPS), returns to The Julia La Roche Show to warn that the U.S. faces what he calls a "triumvirate of bubbles" in equities, real estate, and credit, all inflated at once for the first time in history. He argues that years of persistent inflation, soaring national debt, foreign creditors stepping back from Treasuries, and the unwinding of the yen carry trade are pushing bond yields higher, and that rising rates will ultimately burst all three bubbles. For the first time since 2021, Pento gives a timeline: he expects 2027 to be a very difficult year as the Fed under Chair Kevin Warsh hikes rates and slows balance sheet growth, putting it in direct conflict with Treasury Secretary Scott Bessent's efforts to hold down long-term yields. Pento explains why he reluctantly uses the word "depression," why the traditional 60/40 portfolio could fail retirees, and why he believes the Fed will eventually return to money printing, triggering a prolonged era of "hyperstagflation." He also shares how he's positioned today, still net long, with short-term Treasuries, dividend payers, and precious metals, while watching credit markets closely because "the clock is ticking."

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Links:

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0:00 Cold open: "With reluctance, depression"

0:19 Welcome back, Michael Pento

0:59 The macro picture: 5+ years of inflation crushing consumers

4:16 Insolvency, foreign creditors & the yen carry trade unwind

8:15 Sponsor: Monetary Metals

10:06 The "triumvirate of bubbles": stocks, real estate & credit

14:40 Not a perma-bear: 35 years in the business

15:18 Pento's first timeline since 2021: why 2027

20:08 The forgotten middle class & why the pain is necessary

21:39 Sponsor: Augusta Precious Metals

23:12 Warsh vs. Bessent: are the Fed and Treasury at odds?

24:43 Who wins? "The free market always wins"

25:43 Why he's calling it a depression, not a recession

28:26 Retirees beware: the danger of the 60/40 portfolio

33:02 Where to hide in "hyperstagflation"

34:48 How Pento is positioned right now (still net long)

39:19 Is there hope on the other side?

42:32 The biggest risk nobody's watching: long-term rates

43:33 Record debt, private credit & "this is not normal"

46:28 How to follow Michael Pento