The Bond Bubble: Junk Bonds, Treasuries

When rates move up all bubbles are going to burst. The Bond bubble, it is not just junk bonds, there is a bubble in sovereign credit, there is a bubble in Treasuries. (SPDR Barclays Capital High Yield Bnd ETF (JNK), iShares iBoxx $ High Yid Corp Bond ETF (HYG))

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 The Forward Economic Indicators Are Flashing Recession

The whole economy is nothing but a bubble. We did not have a legitimate economic recovery, we just had a bubble and te bubble needs to be pricked. But if you look at all the forward economic indicators, they are all flashing recession. The only one that is not is the Unemployment Rate which is a lagging indicator.

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

Interest Rate Hike: The Economic Data Did Not Justify It

I think the Federal Reserve felt that even though the data did not justify it, that they had to raise rates because they were afraid of the psychological damage, in other words, to prove they were confident in the economy they had to raise interest rates even though the economic data would argue against it. (SPDR S&P 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD))

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 Federal Reserve Will Not Raise Rates Again

Yellen is trying to reassure markets not to anticipate much in the way of additional tightening and in fact I do not think this is the beginning of the hiking cycle. I think this is the end of it. Normally when the Federal Reserve behind to raise interest rates they do it early in the recovery when the economy has a lot of upper momentum. But the Federal Reserve has waited so long that this recovery is almost over. The recession is about to begin. I think there is a good chance it is already hereof will begin early in 2016.

I think the only reason the Fed is raising rates is to try to show they have confidence in the economy but the reality is that they are trying to cover up fears with this symbolic rate hike. I think they will be doing QE4 next year, they will not raise rates again.

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

Oil Prices & Stock Prices Are Going Down For The Same Reason

The truth is oil prices and stock prices are going down for the same reason. It is not that lower oil prices are causing the market to go down. Both are going down for the same reason and that reason is a slowing global economy including the U.S. Economy and the fact that the Federal Reserve is threatening to slow it even faster by raising interest rates. That is what is driving the market down.

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

If The Fed Was Data Dependent They Would Not Be Raising Rates

The economic data is bad. They do not want to acknowledge that. If the Federal Reserve was data dependent they would not be raising rates based on their own criteria, but they do not want to acknowledge what should be obvious. ( Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Dow Jones Industrial Average ETF (DIA), 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.