“Debt levels have reached a point where they have to be defaulted upon,” Michael Pento of Pento Portfolio Strategies tells Silver Doctors.
The rate of the 10-year Treasury is at a four year high nearing three percent. Pento forecasts it will rise to four percent, which will be a “floor rather than a ceiling.” If the rate rises to four percent, people will have lost about 25 percent from a “risk free” asset since July 2016.
The top is in for the stock market, Pento says. As rates continue to rise, look out for a bankruptcies, layoffs, and a stock crash.