Peter Schiff Commentary – Is the Fed Playing Chicken With the Stock Market?
Listen to Peter Schiff’s Astute, No-Nonsense Stock Market Market Commentary leading into the Fed’s “expected” rate hike. Episode 124.
This is an extremely crucial decision for the market that is not really a market at all. It’s a Fed created BUBBLE.
We have the Fed, instead of the market setting interest rates, which affects the price of everything on the planet. Only disaster can ultimately ensue because no entity can account for the needs and motivations of millions of people that make up the global economy.
Commentary Points with More Found At the Link Below.
- The U.S. stock market finished up its worst week since August, when everybody though a rate hike was just around the corner
- Substantial triple-digit losses across the board
- The Dow Jones closed down 309 points – almost 4%
- Similar percentage decline for the S&P 500
- The NASDAQ dropped 111 points, over 4% decline for the week
- The media is blaming this decline on oil prices, and yes, oil prices are weighing on some stocks
- Some stocks benefit from lower oil prices – case in point: transportation
- Dow Transport was weaker than any other index – down more than the markets on a percentage basis
- The truth is that oil prices and stock prices are going down for the same reason
- The reason is a slower growing global economy, including the U.S. economy, and the fact that the Fed is threatening to slow it down further with an interest rate hike
- Some of biggest losers are not even in the stock market, but in the bond market
- The high-yield bond market is getting obliterated