Peter Schiff On The Markets

Mar 12, 2020

The Russell 2000 Index Is Down 33% From Its High

The Russell 2000 Index, the purest stock play on the U.S. economy, is down 33 percent from its record high set in August of 2018, wiping out all the gains from June of 2016, 3 months before real Donald Trump was elected President. A Presidency that lives by the stock market dies by it as well!

Related trading instruments: iShares Russell 2000 Index ETF (IWM), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), SPDR Dow Jones Industrial Average ETF (DIA)

This Is Similar To 2008

CNBC anchors keep repeating that what is happening now bears no resemblance to what happened in 2008. Not only is this extremely similar to 2008, as in both cases a credit bubble popped, but it's also similar in that none of the anchors on CNBC saw that crisis coming either!

Mar 9, 2020

Why Own Bitcoin?

Bitcoin was created after the 2008 financial crisis and hodlers always assumed that it would be the safe-haven of choice during the next. Looks like they assumed wrong. If Bitcoin is not a currency, not a store of value, and not a safe haven, then what is it and why own it?

The Fed Will Cut Rates To Zero

The collapse in oil prices will provide cover for the Federal Reserve to cut interest rates to zero and ramp up QE, as it can claim it's necessary to fight declining inflation expectations. But when the U.S. dollar cracks, and oil and consumer prices surge, the Federal Reserve will be unable to reverse the policy.

Mar 5, 2020

The Dow Jones Transports Is In Bear Market Territory

The Dow Jones Transports are leading the decline, now down 20 percent into official bear market territory. The next stop is the December 2018 low, which is 5 percent below current levels. If we take that out the January 2016 low is a realistic target. That would be a 44 percent decline from the high!

Related stocks: Delta Air Lines (DAL), United Parcel Service (UPS), Union Pacific Corporation (UNP), American Airlines

How A Recession Really Happens

What happens when declining revenue results in over-leveraged businesses being unable to make the interest payments on their debts?

What happens when over-extended workers living paycheck-to-paycheck get laid off and can’t make their mortgage, car loan, or credit card payments?

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