Tag Archives: strategist

US facing MOST EPIC bond bubble in the history of bubbles, strategist tells Boom Bust

Despite concerns of inflation in the wake of Covid-19 stimulus spending, the US Federal Reserve is issuing assurance that everything is under control as criticism continues to mount.

RT’s Boom Bust talks to Michael Pento of Pento Portfolio Strategies about the current situation and his forecast on what to expect.

Pento says that the total debt of the United States is now 400% of GDP; that’s including national debt, government debt, individual and business debts, and others. “So, the bond bubble holds the key to everything.”

He points out that “The US Treasury sold $ 40 billion in T-bills [Treasury bills – Ed.] last week at an interest rate of zero. This is the most epic bond bubble in the history of all bubbles. So, it’s all contingent on free money forever, and it’s not going to last very long.”

“The Federal Reserve is telling you ‘Don’t worry about inflation cause if it gets out of control (which it already has) we have the tools to stop it.’ Oh, what are the tools – raising interest rates? And when you raise interest rates, you pop all the bubbles concurrently.”

For more stories on economy & finance visit RT’s business section

Author: RT
This post originally appeared on RT Business News

US may have the HIGHEST TAX on capital gains in the world if Biden’s plan comes true, investment strategist tells RT's Boom Bust

Author RT
This post originally appeared on RT Business News

After floating the idea to raise the corporate tax rate, US President Joe Biden now wants to increase taxes for rich investors to cover his massive infrastructure plan.

Reports about new capital gains tax hikes shook US stock markets on Thursday, sending major indices lower. The Biden administration could potentially increase the capital gains rate to 43.4% for households earning at least $ 1 million. 

RT’s Boom Bust spoke to Joseph Gissy, founder and CEO of Strategy Marketplace, to discuss how the move may affect the stock market.

He said Biden was “going after the individual investor, kind of a wealthy investor,” adding that successful stock market players may pay around 50% more in taxes from their capital gains. 

“This will clearly put us in the lead for the highest corporate and the highest individual income tax on capital gains in the entire world,” Gissy said.  

The analyst believes that the recent rally in the stock market has not completely burned out, but investors still should be cautious, in part because of these increased tax rates on the horizon.

For more stories on economy & finance visit RT’s business section