Peter Schiff: US stocks fall no surprise

The fall in US stock prices has been a long time in coming, reckons investment guru Peter Schiff.

Peter Schiff, chief executive of Euro Pacific Capital, isn't surprised by the recent fall in the US stockmarket. Indeed, the perennially bearish gold fan has been expecting it for a long time. "The real time to ask what was going on was when the market was rising." Compared with the rises of past few years, "what's happening now makes a lot more sense".

Ironically, President Donald Trump's tax cuts which had until now been seen as the great hope for corporate profits and otherwise overvalued equity markets are largely to blame. These have "thrown a spotlight on the US deficit" (the annual amount of government spending that has to be covered by borrowing, rather than taxes). Schiff thinks the budget talks between Republicans and Democrats are only likely to make things worse as they will "lead to a lot of pork-barrel spending".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.