Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast. Schiff correctly predicted the housing bubble and the Great Recession of 2007-2009. Schiff argued the Federal Reserve has been used to prop up the stock market while the economy is in shambles. The federal reserve is “printing” massive amounts of money while also keeping interest rates artificially low.
Schiff is now saying that the NASDAQ is near a top and fears a potential October stock market crash. October seems to be a month that the stock market crashes. If this happens, it could be detrimental to Donald Trump being re-elected, though many feel confident the Federal Reserve will continue to prop up the stock market at the detriment to the federal debt and long-term economy. Evidence suggests another quantitive easing is on its way from the Fed, yet the market still fell sharply on Friday when that news should have caused it to steady or rise.
Schiff says that some higher flying stocks like Tesla (TSLA) was hit hard this past week. More bad news for Tesla came after the close on Friday, when the S&P announced it would not be adding Tesla to the S&P500. Some investors were assuming it would include Tesla, which would cause the stock to rise, and the many S&P500 ETFs would be forced to purchase it once included. DocuSign is also another stock which reported better than expected earnings, but still fell 11 percent.
In other financial news, Schiff gold stocks are fairing better than the rest of the stock market as expectations of inflation are soon on its way and also helped by the Oracle of Omaha, Warren Buffett’s Berkshire Hathaway has been buying gold production stocks, though not the metal itself.
Peter Schiff has a long history on suggesting people not to buy Bitcoin even though it has outperformed most every other investment since its release to the public in 2010. Schiff made the prediction yesterday that Bitcoin’s recent rise and decline notes that the cryptocurrency will never trade above $10,000 again if it stays below $10,000 for a significant time. Bitcoin as, at the time of this publishing, Bitcoin is up again to $10,300. Meanwhile, others feel Bitcoin will rise to $500,000 over the next five to ten years.
The United States could be in a pickle as China has announced plans to sell a significant portion of their U.S. Treasury holdings which could cause the Federal Reserve to print even more money than planned. Last year, China reduced their U.S. Treasury holdings last year. Such news could alarm other buyers of U.S. treasuries to reduce their holdings or not buy U.S. treasuries at all, which could cause more problems for U.S. government spending while trying to keep inflation from rearing its ugly head. The U.S. trade deficit is at its highest levels since July 2008, which is ironic because President Trump has tried and failed at reducing the trade deficit by instituting protectionist tariffs, which has proven to fail for decades.