The Real Reason Why Yellen Will Raise Interest Rates

I think the reason the Federal Reserve feels confident to raise interest rates is because the Dow Jones Industrials Average (DJIA) is trading at 21,000. That's why. Just like it felt confident to raise interest rates the first time, in December of 2015 because the markets were giving a false signal that the hike was OK but of course after the rates were hiked the market rallied and then it dumped. We had the worst January in the history of the stock market. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY))

A Fed Interest Rate Hike Is Coming Up

According to Goldman Sachs (GS), the odds of a Federal Reserve interest rate hike coming up at the March meeting which is less than two weeks away is now 95 percent. (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ))

Trump Wants To Make The Government Bigger, Not Smaller!

If we want to strengthen the economy we have to liberate it from the shackles of government. We have to weaken the government  to strenghten the economy. We need a much smaller government. But that is not what Donald Trump wants. Trump spent most of his speech talking about ways to make the government bigger! (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ))

The Stock Market Is Going Way Down In Gold Terms

A good way to measure the stock market is in terms of gold. Let's say right now the Dow jones Industrials Average (DJIA) is worth about sixteen ounces of gold. Let's say the stock market gets cut in half, them it is worth eight ounces of gold or the stock market stays the same and gold prices double from here, it's worth eight ounces of gold too. The stock market in terms of gold is going way down! I think it's going a lot lower than eight. (SPDR Gold Trust ETF (GLD), SPDR Dow Jones Industrial Average ETF (DIA))

The Federal Reserve Knows Another Crisis Is Coming

The reason the Federal Reserve has acted so slowly in increasing interest rates is because they know another crisis is coming and they just hope they do not get blamed for it. (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM))

Traders Are Overlooking The Contractionist Impact Of Rising Rates

I think traders are overlooking the contractionist impact of rising interest rates. Not necessarily just the interest rate increases by the Federal Reserve but look at what is happening to the long end of the bond market since Trump was elected. Even though there was a big reaction in the stock market at the end of last year, so far in 2017, the Dow Jones Industrials Average (DJIA) is not making much in the way of gains. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY))

U.S. Stock Market or the U.S. Dollar: One Is Going To Crash!

The fact that Donald Trump is the President does not change it from an asset bubble to a bull market! 

It`s still a bubble and the air is going to come out one way or another. Either the U.S. stock market is going to crash or the U.S. Dollar is going to crash. But either way, the real value of stocks is coming way down and people should not own them. 

(SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), Apple (AAPL), Facebook (FB), Tesla Motors (TSLA), Netflix (NFLX))

U.S. Stocks Are Very Expensive

The fact that the Dow Jones Industrials Average is at 20,000, that does not reflect a healthy economy, it reflects a bubble! U.S. stocks are very expensive. Candidate Trump has it right when he called it a big, fat, ugly bubble an it is bigger, fatter and uglier now! (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ))

Markets: U.S. Dollar, Gold and the U.S. Stock Market

It was the weakest January for the U.S. Dollar in 30 years! Gold prices are rising, commodity prices are rising and for all the hype about Dow 20,000, the U.S. stock market is pretty much the worst performing stock market in the world so far in 2017. if you adjust for currencies. (SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Gold Trust ETF (GLD))

U.S. Dollar: The Worst January in 20 Years!

Everybody on Wall Street started the year long the U.S. Dollar. Well, I just read that this was the worst January for the U.S. Dollar in almost 20 years! And for all the fanfare and hype about Dow 20,000 - I think the Dow Jones Industrials Index (DJIA) was up just half of a percent in the month of January. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

The Stock Market is Very Vulnerable Here

I think to the extent that we get some of these protectionist type measure it is negative for the U.S. Dollar. It is not going to be a positive like some people think and the stock market and the bond market are very, very vulnerable here. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

Stock Market: The More It Rallies, The Harder The Sell-Off Will Be

I think the more the stock market rallies before Trump is inaugurated the more it is going to fall after he is sworn in. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

The Dow 20,000 Party Will Have To Wait

The Dow Jones Industrials Average (DJIA) 20,000 party is going to have to wait till 2017, although I would not necessarily buy a ticket for January as he will see if the sell-off that started last week may resume in this first week of the New Year. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ))

The New Year May Start With A Sell-Off

The stock market may start the New Year with a major sell-off, just like this year. What I would do if I was sitting on a bunch of profits , I would maybe sell some S&P futures right now to lock in these prices in case there is a rush to get out in January. (SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA))

As Interest Rates Go Up, That Automatically Brings Stock Values Down

As interest rates go up, that automatically brings stock values down.

But I think it is also interesting that the same stock traders that were so worried about what would happen to the stock market if Donald Trump won, the minute he won they just started buying. All they wanted to do was to justify a move up.

People are ignoring that the things they think are going to happen are impossible. (Select Sector Financial Select Sector SPDR ETF (XLF), SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ))

The Bond Market Bubble Has Already Bursted

The bond market bubble has already bursted. Interest rates are rising and that is going to compound the problems for an already weakening economy. (iShares Barclays 20+ Year Treasury Bond ETF (TLT), SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

The Stock Market is Overvalued

The stock market is already overvalued. Its a bubble! And just because we are going to have some tax cuts and regulatory relief, that does not undo that bubble! (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ), Select Sector Financial Select Sector SPDR ETF (XLF))

Rising Oil Prices & Interest Rates Will Negatively Impact Stock Prices

Crude oil prices and long term interest rates are continuing to surge, yet stock market traders and investors are completely ignoring what this will mean for corporate earnings and stock valuations. (SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ))

For How Long Can The Market Be Oblivious To Higher Rates?

For how long can the stock market be oblivious to higher interest rates? Because not only do higher interest rates dramatically slow the economy, they crush the housing market, but stocks themselves, you value stocks based on interest rates. You discount earnings based on interest rates.

Even if the earnings go up a little bit, you have to discount them by a higher amount and the PEs (price to earnings ratio) are already very high and the justification for the high PEs was not the growth rate, it was the discount rate. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ))

The Stock Market Prefers Hillary

It is no secret that the markets want Hillary Clinton to be elected. (SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ))

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