Today Michael Pento told KWN why “this summer is going to be disastrous for equity prices.” Pento, of Pento Portfolio Strategies, also stated he believes JP Morgan, the Fed and gold are headed for a major showdown. But first, when asked about the JP Morgan debacle, Pento responded, “I blame the Fed, like I do for much of the world’s ailments. The Fed buys a bond from JP Morgan, yielding say 2% on the 10-Year, and then they expect the bank, JP Morgan, to accept 25 basis points from the Federal Reserve. Now, they have to beat earnings by a penny, so what do they do?”
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