Why the Treasury Market is Headed for Collapse
May 1st, 2013
The “Most Overpriced, Oversupplied, Over-owned Market in History”
Michael Pento, president of Pento Portfolio Strategies, believes the U.S. Treasury market is a massive bubble destined to pop with devastating consequences.
Unlike most, Pento is willing to put a timeline on when he believes the bond bubble will burst, which is the theme of his not-so subtly titled new book: The Coming Bond Market Collapse.
Sometime in 2015-16, foreigners creditors will conclude with a high degree of confidence “’it’s impossible the U.S. will ever pay me back in real terms and I demand a higher interest rate,’” he predicts. “It will be just like Greece.”
For individual investors, his advice is simple: “avoid Treasuries like the plague.”