"Analysis Without An Agenda"
"The Last Will Be First and The First Will Be Last" Matthew 20:16

Government Stimulus is an Oxymoron

The accumulation of Debt, at its very essence, is simply borrowing consumption from the future. And this is true on any level of debt, be it either public or private. Just as savings is deferred consumption, the exact opposite is true for debt.


Pento Portfolio Strategies
Separate Managed Accounts (SMA)
Inflation/Deflation Dynamic Portfolio

To inquire about our managed accounts please call:

PORTFOLIO AS OF September 30th, 2015

Is an actively managed product that provides complete access to Michael Pento’s twenty-years worth of industry experience, direct account supervision and proprietary investment model.


  • Adaptive, Dynamic management of Michael’s investment philosophy, along with that of his investment team.
  • Investment Policy Committee specifically focused on strong dollar (deflation) / weaker dollar (inflation) correlations and how that paradigm interfaces with a uniquely identified universe of asset classes.
  • Goal is to provide an improved hedge against inflation by factoring into the investment strategy cyclical periods of deflation.
  • Attempts to provide inflation protection with lower beta than static portfolios that ignore changes in USD intrinsic valuations.


The Pento Portfolio Strategies’ Model SMA attempts to provide an improved hedging strategy against inflation, while also offering protection against cyclical periods of deflation. We utilize top down proprietary-macro analysis to position the portfolio in broad asset classes, depending on our view of prevailing inflationary and deflationary forces. We then use our technical database to select the best possible securities within these favored sectors based upon the model’s output.


The Investment Policy Committee convenes weekly where investment themes and strategies are presented and approved by Michael Pento (Committee Chairman). Performance reviews are then conducted on each asset class and individual investment. The Committee discusses the model’s output regarding the direction of the US dollar, moncy supply trends and the inflation or deflation environment.

Sample Model Components

PPS’s proprietary investment model uses various metrics to determine the macroeconomic environment in relation to the inflation/deflation dynamic. Example criteria include:

Money Supply Growth Indicators:
-Household sector debt level
-Nominal and real interest rate dynamics
-Private banks’ balance sheet condition
-Fed and global C.B. monetary policies
-Interest expense on sovereign debt
-Trade and current account deficits
-Sovereign deficit level and flow

Real-time Market Indicators:
-Monetary aggregate growth rates
-Commodity and equity prices
-USD strength/weakness against major Major trading partners

Pento Portfolio Strategies Model uses a weighted approach regarding its stance on the US dollar’s level and trend, as well as the direction of real interest rates. Based on this outlook we will assign weightings to inflation/deflation hedges. The investable universe includes domestic stocks, non-US stocks, commodities and alternative assets, domestic and foreign bonds, currency ETF’s, volatility investments and short-market strategies. Our options strategy includes covered call writing, along with the purchase of index and sector puts and calls. PPS does not utilize margin.


Please call


Michael Pento
Policy Committee

24 years investment experience. Portfolio creator and consultant to Delta/Claymore’s commodity portfolios that raised in excess of $3 billion and were distributed through Claymore / Guggenheim’s sales network.

Justine Coleman

Research and Technical Assistant

23 years experience in the Financial Reporting Industry



Changes to our portfolio are a dynamic process; there is no set schedule for rebalancing. Portfolio rebalancing occurs whenever the model and our investment committee dictate its necessity. PPS also focuses on technical price levels relative to their trading ranges and utilizes an active risk management strategy that seeks to lock in gains and limit losses.



Pento In The News

Investments are not FDIC insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested.
Securities offered through Charles Schwab Institutional Brokerage.
© 2012-2016 Pento Portfolio Strategies, LLC A Registered Investment Adviser, All Rights Reserved, Member FINRA

Pento Portfolio Strategies | 291 Rt. 34 North | Colts Neck, NJ 07722