Markets: Is The Bottom In? Depends On The Fed.

This is all about the Federal Reserve. Wether or not we hit bottom depends on wether the Fed capitulates.

I heard a Fed governor talk about how great the economy is and how it is going to continue on improving. It was Bullard. And Bullard was saying that this year economic growth is going to be a lot faster than it was last year. Last year we were at 1.8 percent and he is saying it will be about 2.5 percent this year.  I do not know where he is getting that number from because this year off to a much worse start than last year.

So, I do not know why he is so optimistic. So, as long as the Federal Reserve has this type of rhetoric it is going to be hard for the market to bottom. (Select Sector Financial Select Sector SPDR ETF (XLF), SPDR S&P 500 Index ETF (SPY), 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.

Economic Problems Are Made In America

One of the only things that are still made in America are economic problems. To try to blame things on China... This has nothing to do with China. Some of the weakest stocks in the U.S. market are stocks that derive all of their earnings (or the vast majority) in the United States.

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 Fed Wants Inflation And They Will Get It

All the people out there that do not expect inflation, they are going to be surprised. And by the time they figure out how much inflation is coming they are going to have huge losses. That is going to be a fine example of to be careful of what you wish for because you just might get it!
When the bondholders  wake up and realize how much inflation they are going to get relative to what they expect, that is a nightmare scenario for the Federal Reserve.

(Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

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