Pento – Time to Buy Mining Shares, Economic Storm Intensifies
May 5, 2012
Today Michael Pento told KWN it is time to buy the mining shares. Pento, of Pento Portfolio Strategies, writes for King World News to explain why it’s for investors to make the move into miners, but first, he warns the economic storm is intensifying across the globe. Pento had this to say about the situation: “The developed world’s economies continue to suffer through a worsening condition of stagflation. In the U.S.; the ADP employment report for April indicated that the economy gained just 119k private sector jobs in total, and lost 4k from the all-important goods producing sector of the economy. The Non-Farm Payroll, report released on Friday, showed that the economy gained just 115k jobs, of which only 14k came from the goods producing sector.”
Michael Pento continues:
“At the same time, productivity is now falling at a 0.5% annual rate in the first quarter of 2012. That means there will be virtually zero growth in the goods available for domestic consumption and international trade, yet the money supply continues to grow 10% YOY—a great recipe for more stagflation. But Europe is doing even worse than the U.S., as their recession is quickly intensifying.
Their manufacturing index fell to 45.9 in April, a 34-month low and the jobless rate in the 17-nation euro area increased to 10.9% in March, which is up from 9.1% a year ago….