Peter Schiff: If They Were Smart, They Wouldn’t Be in The Stock Market

The comments below are an edited and abridged synopsis of an article by Schiffgold

Peter Schiff addressed a number of subjects in a recent podcast, including bitcoin, Michael Bloomberg entering the US presidential race, the stock market, wealth inequality, the Fed and the voting age.

Peter Schiff: If They Were Smart, They Wouldn’t Be in The Stock Market | BullionBuzz
Businessman using tablet and laptop for analyzing data stock market in monitoring room background, forex trading graph, stock exchange trading online, financial investment concept. All on laptop screen are designed up.

Schiff said he underestimated the impact of QE4 on the stock market; he misjudged how much upward pressure would result. He thought the dollar would fall due to lower interest rates and more QE, but that hasn’t happened—yet. The greenback will go down, however, and when it does, it will drop like a stone. That won’t be positive for the stock market or the bond market, and there will be a big upward move in gold.

Many who are in the stock market think they’re smart, says Schiff, but if they were, they wouldn’t be in the stock market. Some are likely momentum traders who can say, “Here’s a bunch of idiots buying stocks, so I’m going to buy stocks so I can sell to them, and I’m going to get out the door before they realize the market has turned.”

Schiff also discussed Minneapolis Fed President Neel Kashkari. Recently, Kashkari suggested that the Fed might be able to use monetary policy to address wealth inequality. But one of the reasons there is a widening gap of wealth inequality is because of the Fed and because of the policies that Kashkari advocates.

Creating inflation is a transfer of wealth from savers to debtors. This doesn’t mean the typical American consumer; Schiff is referring to those who have levered up to buy real assets. He thinks it’s ridiculous for the Fed to say that it’s going to do something about income inequality when it is the reason that we have more income inequality than would normally be the case.

“Of course, you can’t really have income equality in a free society. And even if you are going to embark on this misguided notion of ‘fixing’ income inequality, how is the Fed going to do it? All it can do is print money!”

Leave a Reply

Your email address will not be published. Required fields are marked *