By Peter Schiff March 27, 2018
Last Thursday, the Dow Jones fell 724 points. It followed up with a 424 point decline on Friday. Meanwhile, the Nasdaq fell 2.43% Friday.
Most analysts blamed the plunge on fear of an all-out trade war between the US and China. But the Federal Reserve rate hike on Wednesday also likely played a part in the stock market decline. The markets don’t like the prospect of having their easy-money punch bowl taken away.
So, could we be on the verge of a gold breakout as stocks break down?
In his latest podcast, Peter Schiff said he believes we are already in a bear market. Technically, analysts don’t start talking bears until the stock market declines 20%. But as Peter pointed out, you have to drop 10% before you get to 20.
So, if this is a bear market, if we ultimately go down by more than 20%, then this is the bear market right now. It’s only a correction if it doesn’t turn into a bear market. But if it becomes a bear market, it’s been a bear market the entire time, and I think we are in a bear market now.”
The mainstream analysts continue to assure us that everything is fine. The fundamentals haven’t change. Peter said in a sense, they’re right.