Lots Of Downside To Markets & Economy

We had the worst opening week in the history of the stock market and I think there is a lot downside to come both for the market and for the economy.

It is amazing that some people are trying to pretend that there is no problem or they are trying to say that it is contained to China, or that the problems of the economy are contained to manufacturing and everything else is OK. That is what they said when the mortgage bubble bursted. They said it was contained to subprime or when the Nasdaq bubble bursted that it was contained to tech. It is never contained but they never run out of excuses.

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

Markets: Is This A Buying Opportunity?

In the meantime the Great Recession that was interrupted by the Federal Reserve is about to resume unless the Fed comes back. Ultimately we are going to die of the Fed`s cure that is even worse than the disease.

But yes, this might be a buying opportunity, it all depends on how quickly the Federal Reserve comes clean. But I think they are going to wait a while, they are playing a game of chicken but this economy is in lousy shape. When people say, "Its contained to manufacturing, it is just an industrial recession", it is as contained as the mortgage problems were contained to subprime.

Related Exchange Traded Funds: Energy Select Sector SPDR ETF (XLE), Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Barclays Capital High Yield Bnd ETF (JNK), SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY)

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 Market Is Going Lower Until The Fed Comes Clean

First of all, we are nowhere near capitulation. I think we are still in denial. Remember, the entire bull market was about the Federal Reserve and the Fed finally pricked its own bubble in December. And there is a lot more air that is going to come out. The market is going much, much lower until the Federal Reserve comes clean and admits that it is not raising interest rates any more. I think they will have to launch QE4 to stop this market and that is exactly what they are going to do.

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 One Thing That Has Not Declined Since The Fed Raised Rates

The one thing that has not declined since the Federal Reserve raised rates is gold. Gold is actually up better than 40 dollars an ounce since that rate hike. And if you remember, everybody was unanimous that if the Fed raised rates gold was going to tank because after all higher interest rates were going to crush the gold market. But I was saying the opposite because I knew that the price of gold had been falling for years in anticipating the raising rates. So, my perspective was, buy the rumor, sell the fact, and I thought the price of gold would go up. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG))

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. Economy, Markets: We May Already Be In A Recession

We may already be in a recession. The Atlanta Fed has already downgraded their forecast for the fourth quarter of last year to just 0.8 percent. And I think by the time we actually get the first estimate on January 29th, we can actually have a negative number for the fourth quarter. And if you look at all the economic data that is coming out, we can easily have a negative first quarter too and then we are in a recession.

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

Gold Stocks: Wall Street Is Still Oblivious To These Bargains

You would think that gold stocks would be up a lot more considering the fact that the cost for these mining companies are plunging because their labor costs are going down because they are in Canadian Dollars or Australian Dollars, their energy costs are collapsing and the revenue is going up.

But Wall Street is still oblivious to these bargains that exist in the mining sector but of course year-to-date the mining stocks are up and that is the only sector in the market that is up and I tell you that no one on Wall Street owns these stocks.

(Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG), 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.