Advertisement
Features

Peter Schiff: the buck is heading for bust

America is slipping into a recession and yet everybody is blind to it.

913-Schiff-634
Peter Schiff, chief executive of Euro Pacific Capital

The US economy is headed for "the biggest bust ever", Euro Pacific Capital's CEOPeter Schiff told Kitco News last week. People are oblivious to signs that the USeconomy is slipping into recession, says Schiff. "As this reality rears its head, gold prices are going to start to rise" and the dollar "is going to fall into a vacuum... the only buyer is going to be the Federal Reserve". The resulting inflationary environment could create "the perfect storm for gold".

Advertisement - Article continues below

For now, things might look just fine after all, last month the Nasdaq stock exchange enjoyed its biggest gain since 2000. But as Schiff puts it in a recent episode of The Peter Schiff Podcast, investors need to be aware of what happened right after that peak 18 years ago: the Nasdaq declined by around 80% from peak to trough. This lesson from history "should give people pause", says Schiff.

Yet there is none. US stockmarkets have now been in a bull market for an extremely long period, and this is also now the second-longest economic expansion on record. Yet rather than take this as a sign that we could be near the end, instead "people are betting that we're not going to have another recession and we're not going to have another bear market maybe ever".

This is worrying. Not every market is currently running with the bulls. Manyemerging markets are getting clobbered some are even at decade lows. Rather than believe everything is rosy, a more sensible bet would be to assume, says Schiff, that we will have another recession and bear market and relatively soon.

Advertisement
Advertisement

Recommended

The currencies to bet on this year
Currencies

The currencies to bet on this year

The US dollar could be set to weaken this year, while the euro, Canadian dollar and the Swiss franc could be good bets for optimistic traders.
17 Jan 2020
How long can the good times roll?
Economy

How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019
Why Wall Street has got the US economy wrong again
Economy

Why Wall Street has got the US economy wrong again

The hiring slowdown does not signal recession for the US economy. Growth is just moving down a gear, says Brian Pellegrini.
25 Oct 2019
James Montier: valuations are way too high
Investment gurus

James Montier: valuations are way too high

The market is completely discounting the risk to the economy and operating as if there is nothing to worry about, pricing in a V-shaped recovery, says…
10 Aug 2020

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
UK house prices hit a new record high – can it last?
House prices

UK house prices hit a new record high – can it last?

Despite the pandemic, UK house prices have hit a new high. John Stepek looks at what’s driving the surge in prices, and what it means for house prices…
7 Aug 2020