Dollar Bulls Are Wrong

I wonder how far the stock market has to fall before it dawns on some of these dollar bulls that the Federal Reserve is not going to raise rates. If we are in a bear market, is the Federal Reserve going to raise rates? I do not think so. If the Dow Jones Industrials Index drops 20 percent, are they going to kick the market in the groin while it is lying on the ground? Do they want the market going down 50 percent? Especially when the foundation of the recovery is the wealth effect from the stock market and the housing market.

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 Stock Market Could Drop Precipitously From Here

The markets are going to continue under pressure, the stock market could drop precipitously from here if this idea of a rate hike is not taken off the table by the Federal Reserve. Remember, the last time we had a significant correction in the stock market, the only thing that stopped it from turning into a bear market was a statement from a Fed Governor that QE4 was being considered.

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

Yellen Is Going To Have To Come Out

Janet Yellen has let the market assume that they are about to raise interest rates. She has not done anything to distract them. She is going to have to come out and actually tell people, "The economy is weak, we are not going to raise rates."

Maybe she is going to have to waive the white flag and surrender if she wants to stop the carnage in the markets.

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

U.S. Stocks Are Now Down YTD

Well, that was quick. The Nasdaq 5,000 party ended pretty much the day it began. The Nasdaq today was down better than 80 points, we are now at 4867 and we are leaving 5,000 rapidly in the rearview mirror. The Dow Jones was down 332 points. Remember on last week`s podcast, I mentioned that the Dow Jones Industrials Index and the S&P 500 Index were still up on the year but ever so slightly and I thought it would surrender their gains this week. Well, it happened on Monday. Both the S&P, which was down better than 35 points and the Dow which closed at the low of the day, down 332 points, have wiped out all their gains and are now negative on the year.

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: Now Good News Is Not Good News

Now good news is not good news. Good news is bad news, because everybody believes that the Federal Reserve is going to raise rates now in June based on this number (Employment Report). And I think one of the reasons the markets had been rising recently was because more people were coming to my way of thinking of least about the June rate hike, thinking that they were off the table. Because the economic data had been so bad that people were thinking, the Federal Reserve is going to wait. But now that they have got this jobs data, everybody is convinced that they are going to move in June. I do not know why. There is nothing about this data that should change the Fed`s mind. This is just the same type of jobs number we have been getting all year long. If the Federal Reserve was not about to raise rates on the January number, which clearly was not based on Yellen`s most recent testimony, why should they raise it now? There is nothing remarkable about this number.

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

Nasdaq: A Key Reversal

We had a beat, a stronger than expected jobs number and the Dow Jones Industrials Index closed off almost 300 points.

The weakest technically was the Nasdaq. The Nasdaq traded above 5,0000 for the first time in 15 years on Monday, it closed above 5,000 too. But it closed not only down for the week, but it was an outside week. We took out last week`s high and closed below last week`s low. Now, from a technical pattern, that is called a key reversal and its a very bearish sign for that index.

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