ALERT: 2027 Will Be A "Disaster" For Both Stocks & Bonds | Michael Pento

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Michael Pento (1:00)

2027 is going to be a very, should be a very difficult year for the stock market and in the bond market. There's a small chance that 2027 won't be a disaster, but it's very likely that it's going to be a disaster.

Adam Taggart (1:24)

Welcome to Thoughtful Money. I'm Thoughtful Money Founder and your host, Adam Taggart, welcoming you for a special discussion here with Michael Pento. First off, Michael, thanks so much for joining us.

Michael Pento (1:36)

It's always a pleasure to see you, Adam.

Adam Taggart (1:38)

Thank you, my friend.

Even on a Saturday.

Yeah, this is a special recording. We're doing it on a Saturday. You're taking time out of your busy weekend schedule to give us an update here. The reason you're doing that is because your 20-point model, which you have walked us through many times on this program, is starting to tell you something new. And you're a man of your word. The last couple of times you've been on, I've said, Michael, when your model starts to shift, that we're entering into a new sector, please come on and let us know. Obviously, after you've let your own subscribers know, you're now doing that. So why don't we, let's talk about this any way you like. You can tell us what your model's telling you that's different this time, or I know you wanted to provide a little bit of context here at the beginning, because I think I'm fairly get painted with the brush, as do I and many people on this channel of being a perma bear. That's not the case. You're very, very data driven.

Michael Pento (2:31)

Exactly. Thank you again for having me on the program. It's always a pleasure to be with you, Adam.

So as promised, my model went. So anytime I was going to go to either a net neutral position or short position, I emailed you and I said, I think things have changed. So the last time I did this was in late 2021 It was in December 2021 I became neutral and then bearish. And I was on your, that's about the time I started coming on your program. I just a refresher. 2022 turned out to be a pretty bad year for stocks and bonds. In all candor, I stayed bearish longer than I should have. I did not factor in the draining of the reverse rebuild facility.

So I was wrong for the first half of 2023 But since then, I've been in a net long position, and that's verified by any interview. The plethora of interviews I've been with you in the over the years, I've ended saying I am net long equities. What I have been, I would say, permanently bearish on is the foundation, the structure of this economy, which is built on debt, asset bubbles, and money printing. And I said it would end badly at some time. But then I always caveat and say, look, right now, I'm bullish, I'm net long. So there's always some troll or mutant that will go on the comment and comment say, oh, this guy has been saying this for years. Well, I'm obviating and precluding that asinine comment by saying, anybody who knows me or any investor who's been with me understands that I have been net long the market since 2023 But now I am neutral. I'm not net short yet. I've neutralized the portfolio. And let me just tell you why.

And if you just give me a few seconds here or maybe a couple of minutes, I'm sure you'll be interested in what I have to say, you and your audience.

Adam Taggart (4:25)

Absolutely.

Michael Pento (4:26)

Okay. So here's the reasons why. And there's three of them. Number one, the Fed is in the process of pricking the equity bubble.