Will The Stock Market Be Cut In Half Again?

Twice in the last 15 years the market has been cut in half. Not just the Nasdaq, but the S&P 500 Index and the Dow Jones  Industrials. Twice in the last 15 years!

Who says it cannot happen a third time?

Related ETFs: SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), SPDR Dow Jones Industrial Average ETF (DIA)

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

Stock Market: In Bubbles You Have To Make An Important Decision

Bubbles force you to make an important decision. You either look like a fool before they pop or you look like a fool after they pop. That`s it. And why do I say you have to look like a fool before they pop? Because you are the guy saying it is a bubble, saying it is irrational and you are the one that is not buying the stocks and as the bubble gets bigger and bigger the people that spotted the bubble look like they are fools because they are out of the action, they are not making the money that everybody else is making.

Then of course, the bubble bursts and all the people that thought they were so smart, end up looking really foolish because they lost all their money.

Related stocks: Facebook (FB), Tesla Motors (TSLA), Netflix (NFLX), Twitter (TWTR), Amazon (AMZN), LinkedIn Corp (LNKD)

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

Stock Market: The Whole Market Is A Gigantic Bubble

I would agree that I do not think the Nasdaq, or technology in particular is as overvalued now, as it was then, certainly compared to the rest of the market. But I think the market in general, not just the Nasdaq or technology, but the Dow Jones Industrials, the S&P 500 Index, I think the whole market is a gigantic bubble and I think the Federal Reserve has supplied a more air into the bubble this time than it did 15 years ago, because it needed to. I mean, it did not really need to, but to create the illusion of prosperity, it was forced to.

I think the U.S. Economy is much more screwed up now than it was 15 years ago, that it required a lot more air to inflate a bubble and there still are going to be dramatic consequences for investors and for the economy, if and when this bubble does in fact burst. And the only way it won`t burst is if the Federal Reserve decides it is really to big to burst and so it prints endless amounts of money.

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