The Next Time The Fed Lowers Rates To Zero, The Dollar Will Collapse

President Trump claims that if he had zero percent interest rates the "strong" U.S. economy would be even stronger. He should be careful what he wishes for, as the next time the Fed lowers rates to zero, the dollar will collapse, taking the bond market and the economy down with it!

This Bear Market Is Not Going To End Quickly

Peter Schiff on Fox Business (Oct 29, 2018)

"The Federal Reserve should raise interest rates but the markets will collapse as a result. This bear market is not going to end quickly like the one in 1987. This will be a protracted bear market like the one we had from 1966 to 1982."

Nasdaq: Worst Monthly Decline Since The Financial Crisis

We still have three trading days left in the month of October and the Nasdaq is on pace to its worst monthly decline since the 2008 financial crisis and yet everybody thinks there's no problem!

Stock Market: The Downtrend Is Intact

Some of the highlights from the Peter Schiff Podcast, ep. 402.

Peter mentioned that the Russell 2000 Index is already in correction territory,

"The Russell 2000 is actually down about 14 percent from its highs so it's now officially in a correction."

Peter also mentioned that yesterday's rally had all the characteristics of a short covering rally and that the down trend in stocks in very likely still intact,

"To me this looked like a classic reversal Tuesday type of rally, one of the reversal Tuesday's where you gap way down and then just rally throughout the day The rally did not produce a positive close so it was not a technically significant rally. In fact, I think the downtrend is intact. To me, it looked like a lot of short-covering was going."

Financials are an example of weakness in the U.S. stock market,

"If you look at the financials for example all those stocks continued to go down closing in the red rallied off the lows but no substantial rallies."

The Box That The Federal Reserve Has Placed Itself In

That's exactly the choice that the Federal Reserve is going to have to make. Next time they're going to have to raise interest rates into a weak economy. 

In fact, they're gonna have to raise interest rates into a financial crisis, into a depression and if they don't do it we're gonna have something even worse, we're going to have hyperinflation. 

That is the box that unfortunately the Federal Reserve has placed itself in based on years and years of this monetary policy.

Stock Market: What's Happened Thus Far During The Month

Look at what's happened thus far during the month of October, which I had been warning on my podcast, looked like there could be a weak October given where we were in the market, given how ridiculous the sentiment was in the face of overwhelming evidence that the economy was in fact weakening.

If you look at the numbers the Dow Jones Industrials Average (DJIA) is down 3.8 percent so far on the month. That's the best performing of the averages. The S&P 500 Index is down about 4.7 percent on the month, the Nasdaq Composite is down 7.4 percent, the DJ Transports down 8.3 percent and the Russell 2000 shows a 9.2 percent decline.