Rally In Bonds: False Safe Haven Bid

The rally in bonds is only because of the false safe haven bid that the bonds are getting because of all the problems, just the beginning of the taper is causing. But I am not basing my idea that the taper isn`t working on the recent sell-off in the market. I knew this sell-off was coming, that is why I said, when the Federal Reserve starts to taper, the markets are going down. As the Federal Reserve tapers more, the markets are going to be under even more pressure. And imagine how much pressure they would be under if the Federal Reserve actually tried to sell the 4-plus trillion in Treasuries and mortgages that are currently on its balance sheet.

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

Video: Stock Market, Treasury Bonds & Gold Outlook

Related assets and ETFs: US 10-Year Treasuries,  SPDR S&P 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD)

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

When The Market Realizes There is No Exit Strategy

The whole recovery theory that the Federal Reserve is basing the taper on is the wealth effect from rising asset prices. But we can`t have rising asset prices without even more support from the Federal Reserve. So, when the market realizes this, that there is no exit strategy, that it is cheap money forever, then it is going to be more than 85 billion a month of QE. Then you are going to start to see a huge increase in the price of gold as you get tremendous downward pressure on the U.S. dollar.

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