I’m not big on financial predictions, but I do pay attention to them so as to be able at least to measure the landscape of financial opinion.
Predictions aside, Michael Pento is someone whose opinions I respect. He doesn’t buy the current INFLATION NARRATIVE and sees MASSIVE DEFLATION on the horizon instead. He’s not even ruling out a DEFLATIONARY DEPRESSION.
Here’s a excerpt from a piece of his on the subject:
“Next year has the potential to be known as the Great Deflation of 2022. This will be engendered by the epiphany that COVID-19 and its mutations have not been vanquished as falsely advertised, the massive $6 trillion fiscal cliff will be in freefall, and the Fed’s tapering of $1.44 trillion per annum of QE down to $0, will be in process.
“Then, the economy will be left with a large number of permanently unemployed people and businesses that have permanently closed their doors. And, the $7.7 trillion worth of unproductive debt incurred during the five quarters from the start of 2020, until Q1 of this year, which the economy must now lug around.
“All this should lead to a stock market that plunges from unprecedentedly high valuations starting next year. And, in the end, that is anything but inflationary. Indeed, what it should lead to is more like a deflationary depression. But the story doesn’t end there. Unfortunately, that will cause government to change Modern Monetary Theory from just a theory to a new mandate for the central bank. And hence, the inflation-deflation, boom-bust cycle will continue…but with greater intensity. The challenge for investors is to be on the correct side of that trade.”
And here’s the piece from which the above three paragraphs were extracted:
May you wind up on the RIGHT SIDE of that trade!
Tudor Place 