Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: This Market Is Looking Like, Walking Like and Quacking Like a Bear Market.

  by    0   0

Stocks rebounded Monday after their precipitous fall late last week. The Dow Jones rose 669 points. Then on Tuesday, it tanked again, falling over 300 points.

In his latest podcast, Peter Schiff said the increase in stock market volatility is another sign things are different. He reiterated what he said last Friday. He thinks we are in a bear market. All of the flashing warning signs are there. It’s just that nobody can seem to see them.

Increased volatility usually happens at inflection points, especially when we’ve had a record period of no volatility, or minimal volatility, all of a sudden we’re having incredible swings in the stock market.”

Of course, when the market makes big swings upward, everybody breathes a sigh of relief. But Peter pointed out you get some of the most spectacular rallies during bear markets.

That is how bad markets operate. They’re trying to follow the slope of hope. It’s like trying to boil a frog slowly. You don’t want to turn up the heat so he jumps out of the pot. So, it’s a gradual increase. The idea is when you have these big spikes in the market, that creates some hope and some optimism, and now people are ‘Oh great! No reason to sell.’ You see that decline is over and people are afraid to miss out on the next big up day, so it keeps people in the market. It’s like keeping the frog in the water. They don’t realize that they’re getting boiled.”

Peter noted that the big internet stocks – often referred to as FANG (Facebook, Amazon, Netflix and Google) – all had significant drops. One of the big reason is increased scrutiny about how these companies use the data they collect from users. Peter launched into a long talk about privacy and pointed out we could see increased government regulation of these companies. (Not that the government actually cares about your privacy. It’s the biggest violator of our privacy rights.) This could dramatically change the social media landscape.

That’s going to mean their earnings are going to collapse. And how are they going to replace that lost revenue? Well, they might have to start charging people to use their product.”

The problem with all of this is these companies serve as the pillars of the Nasdaq.

These stocks dominate the market; they’re in everybody’s portfolio. And if the government takes action to diminish the value of what these companies have then that is very negative for the market.”

At any rate, we have more and more signs of a bear market, and yet everybody still thinks we’re in a bull market. They think the recent drops are nothing more than a correction.

But to me, if it looks like a duck and walks like a duck and quacks like a duck – it’s a duck. And this market is looking like, walking like and quacking like a bear market.”

Peter said the real question is how big of a bear market will the Fed allow before it tries to reverse the course?

It’s going to take more than a tweet from Donald Trump. The Fed is going to actually have to do something to change this game. They’re going to have to take away these rate hikes. They may even have to launch QE4. I don’t know if just not raising rates is going to be enough.”

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Untangling Bitcoin and Blockchain

bitcoin transactionsBitcoin and the blockchain are joined at the hip – so much so that a lot of people don’t distinguish between the two. Cryptocurrency and blockchain have almost become synonymous. But in fact, they are two different things, and it’s important to understand the distinction. The blockchain is a technology. Cryptocurrency is a medium of […]

READ MORE →

Jim Rickards: Junk Bonds Could Set off the Next Crisis

Last month, we reported on troubling signs in the corporate bond market. According to Moody’s, the majority of US companies have a “speculative” credit rating. They are considered high risk. As a result, their debt is “high yield” or “junk. When you combine leveraged loans and junk bonds, the total level of “junk” debt in the […]

READ MORE →

Three Reasons Gold Will Rise from Its Slumber

The price of gold has languished in recent weeks. After falling below $1,300 in May, the yellow metal has hit 2018 lows this month. Dollar strength along with the anticipation of further Federal Reserve rate hikes have bolstered the dollar and weighed on gold. Peter Schiff has been saying this dollar strength is merely an upward […]

READ MORE →

Which Countries Produce the Most Gold?

Global mine production fell slightly in 2017, the first drop in mine output since 2008. In fact, gold production has generally increased every year since the 1970s. The drop in 2008 was something of an anomaly, as it occurred at the onset of the 2008 financial crisis. The recent slowdown in mine production is more […]

READ MORE →

IRS Building Walls to Keep Americans In

There has been a tremendous amount of debate about building walls to stop illegal immigration. But the IRS is building walls to keep Americans in. The US government is cracking down on Americans with outstanding tax bills by revoking passports. 

READ MORE →

Comments are closed.

Call Now