A Bear Market in Stocks, Plus An Economic Recession

I think not only we are in a bear market in stocks, I think we are in a recession economically. I think the recession we are in now is going to be longer and deeper than the great recession of 2008-2009. 

All bear market begin as corrections but they do not officially call it a bear market until its down 20 percent. The Russell 2000 Index is down 25 percent, the Transports Index is down 30 percent, many individual sectors and stocks are down a lot more than 20 percent!

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Recession Is Going To Gather Momentum

The U.S. Economy is rapidly returning to recession, I think the recession has already begun and I think this greater recession that is going to be worse than the one we had in 2008-2009 begun at the end of last year. It is going to gather momentum through out this year and that is going to make it impossible to raise interest rates again.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Federal Reserve Is Not Going To Be Able To Raise Interest Rates Again

I do not believe the Federal Reserve is going to be able to raise interest rates again, that was the reason I thought they were not going to raise them at all. I thought they were smart enough to recognize what the consequences of raising rates would be and that they would not want to put themselves in a box. I guess I overestimated the competency of the Federal Reserve. They raised rates apparently clueless of the havoc it would cause in the markets but I warned everybody of what was going to happen.

Of course since they raised rates, this is the worst start to a year in the stock market in history and in fact its one of the worst months in history of any year. And the U.S. Economy is rapidly returning to recession.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.