The Federal Reserve is going to try it again. The Fed is going to take interest rates negative and launch QE4 that it is going to be bigger than QE3. But it will be too late to stop this recession from unfolding.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
Jan 22, 2016
Markets: Jamie Dimon Is Wrong, High Yield Bonds & Treasuries
The market has got to be telling us that not only we are in a bear market but we are in a recession, the market is forward looking, the market is telling us that we are in a recession. In fact, the bond market is telling us that.
I was watching Jamie Dimon on CNBC, he was talking about why he saw value in the high yield bond market and he is looking at the spreads between high yield and Treasuries and he is saying, the high yield market is priced as if we were in a severe recession and therefore this is a great bargain because we all know that we are not in a severe recession, we are not even in a recession, the economy is going to grow 2 to 3 percent this year. Everything is great yet the bonds are priced as if there is a recession. Maybe the reason that the bond market is priced as if we are in a severe recession it is because we are in a severe recession. That would make sense because why are the bonds priced as if we are in a severe recession? Because we are! All the economic data that we keep getting shows that.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
I was watching Jamie Dimon on CNBC, he was talking about why he saw value in the high yield bond market and he is looking at the spreads between high yield and Treasuries and he is saying, the high yield market is priced as if we were in a severe recession and therefore this is a great bargain because we all know that we are not in a severe recession, we are not even in a recession, the economy is going to grow 2 to 3 percent this year. Everything is great yet the bonds are priced as if there is a recession. Maybe the reason that the bond market is priced as if we are in a severe recession it is because we are in a severe recession. That would make sense because why are the bonds priced as if we are in a severe recession? Because we are! All the economic data that we keep getting shows that.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
Jan 21, 2016
U.S. Stocks: All Bear Markets Begin As Corrections
The bear market in global stocks continues. In fact I believe we are in a bear market in the United States even though nobody wants to admit that its a bear market because technically the major averages are not quite down 20 percent even though some of the averages are, the Russell 2000 Index is down 25 percent from its high, in a bear market. There are many individual sectors that are way down in bear market territory.
All bear markets begin as corrections. You cannot be down 20 percent if you are not down 10 percent first. The bear market of 2001 when the S&P 500 Index and the Dow Jones Industrials were basically cut in half, the Nasdaq went down by 80 percent, that decline started as a correction. The same thing in 2008, that market meltdown where the S&P 500 Index and the Dow Jones Industrials were down about 50 percent, they were calling it a correction too until they realized that it was a bear market. And that is what they are talking about today.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
All bear markets begin as corrections. You cannot be down 20 percent if you are not down 10 percent first. The bear market of 2001 when the S&P 500 Index and the Dow Jones Industrials were basically cut in half, the Nasdaq went down by 80 percent, that decline started as a correction. The same thing in 2008, that market meltdown where the S&P 500 Index and the Dow Jones Industrials were down about 50 percent, they were calling it a correction too until they realized that it was a bear market. And that is what they are talking about today.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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