"Analysis Without An Agenda"

The Success of Irish Austerity: The Joke is on Krugman

During the late 1990s, Ireland’s economy was booming. This was mostly due to a low corporate tax rate of just 12.5% and an international real estate bubble that boosted global Gross Domestic Product (GDP). For a myriad of reasons Ireland was a magnet for foreign direct investment and the envy of Europe.


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.


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Past investment performance is not indicative of future results. Advisory services offered through Pento Portfolio Strategies, LLC. a Registered Investment Adviser.

Holdings represent the largest holdings in the Pento Portfolio Strategies Model – SMA Managed Account as of 09/30/2015. These holdings are subject to change at any time without notice and individual account holdings may vary. The specific securities do not represent all the securities PPS Model - SMA has purchased, sold, or recommended for clients over the past year. The reader should not assume that investments in securities listed above were or will be profitable. Sector diversification represents sector allocations in PPS Model – SMA as of 09/30/2015. These sector allocations are subject to change at any time without notice and individual account sector allocations may vary. This document has been prepared for the intended recipient only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. All securities involve varying amounts of risk, and their values will fluctuate.

Carefully consider the risks and special considerations associated with investing in the Model – SMA Managed Account. You may lose money by investing in the Model Account.



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