Podcast: The Market Was Expecting More From The Fed

Peter Schiff dissects the latest move from the Federal Reserve and its future implications for the markets.

"The selloff from the high to the low was just under 900 points. Earlier in the day the Dow had rallied up about 300 points because there was a lot of anticipation that even though the Fed was going to hike rates today, that it would indicate it would pause."

Related trading instruments: Select Sector Financial Select Sector SPDR ETF (XLF), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ);

Markets: Russell 2000 Index Is Leading The Market Lower

Highlights from the most recent podcast (December 14th):

Peter cited the current weakness on the Russell 2000 Index and how it is leading the market lower:

"In fact, the weakest indexes continue to be the Russell 2000 - I've been talking about the weakness in the small caps. That index is now down better than 19% from its peak just about 4 months ago. So we're almost officially in bear market territory. We'll probably be there by Monday, judging by the technicals." 

Peter also mentioned the Dow Jones Transports as another index that is already trading at its lowest levels of the year:

"The other index that is leading the way down is the Dow Jones Transports. This index is now down better than 18% from its peak. Both the Transports and the Russell 2000 are at the lowest levels of the year."

Peter Schiff will be live on Fox Business News on Monday on the show "The Countdown to the Closing Bell" to discuss current market events. 

Federal Reserve: New Rounds Of QE Will Cause Stagflation

If we are going into recession and if the Federal Reserve is going to go back to the Quantitative Easing (QE) well and takes interest rates back to zero, the U.S. dollar is going to tank and the inflation fire is going to heat up and it’s going to be stagflation.