The US stock market had a potentially significant day on Wednesday. Markets have been rallying on the hope of interest rate cuts in the near future. But Fed officials have been trying to walk back those expectations. Did the central bankers manage to steal the Santa Claus rally? In his podcast, Peter Schiff talks about the recent moves in the stock market.
The Dow Jones index hit record highs last week. But when you price the index in real money — gold — it remains far below record levels.
After the Federal Reserve effectively surrendered to inflation at its December meeting, projecting three rate cuts next year, New York Fed President John Williams tried to walk the surrender back. In his podcast, Peter Schiff analyzed Williams’ more hawkish comments and compared them to Powell’s dovish stance after the FOMC meeting.
Williams said, “We aren’t really talking about rate cuts right now,” and that it’s premature to expect rates to fall in the opening months of 2024.
According to the latest non-farm payroll report from the Bureau of Labor Statistics (BLS) the US economy added 199,000 new jobs in November and the unemployment rate dropped to 3.7%. This was widely viewed as a “strong” jobs report. According to one mainstream analyst, the November employment data “portrays an economy that is easing toward a soft landing and is not on the brink of a recession.”
Peter Schiff wasn’t as impressed. He called it “just another hyped-up jobs report.”
Gold blew through $2,100 and set a record high Sunday night. Then it rapidly sold off on Monday. But gold still held above $2,000. In his podcast, Peter Schiff put the big rally and subsequent selloff into perspective, talked about what’s next, and discussed how investors can best position themselves for subsequent moves.
Gold set a new record on Friday and broke it again over the weekend. The spot price went as high as $2,125 in overseas trading Sunday night. In his podcast, Peter Schiff explained why he thinks this bull run is just getting started and gold will go much higher.
In fact, Peter said he thought these records would be broken “many many times over.”
The latest buzzword in the mainstream financial media is “soft landing.” Everybody seems convinced the Fed has beaten inflation, and that it has completely avoided pushing the economy into a recession. According to the mainstream narrative, we may see a bit of an economic slowdown in the months ahead, but a recession is pretty much off the table. In his podcast, Peter Schiff explains why a soft landing is impossible.
The October CPI came in lower than expected, sparking a rally in stocks, bonds, and gold. Cooling prices reinforced the belief that the Federal Reserve won the inflation fight and the rate hiking cycle is over. In his podcast, Peter Schiff explained why the demise of inflation is greatly exaggerated.
Optimism is driving the markets. Most investors seem to believe the economy is strong. The consumer is resilient. Price inflation is easing. And most people think the Federal Reserve is finished hiking rates. In his podcast, Peter Schiff explained why this investor optimism is at odds with reality.
The Federal Reserve operates under a dual mandate from Congress — to achieve maximum employment and stable prices. In a recent podcast, Peter Schiff explained why the Fed won’t achieve either.
