UPDATE: The trade war is already lost, Trump is doomed and this investment is about to go 'ballistic,' strategist says
By Shawn Langlois, MarketWatch
That's Euro Pacific Capital's Peter Schiff explaining to Fox Business following the Dow Jones Industrial Average'snasty plunge on Wednesday how he sees this turbulent market ultimately playing out.
"The dollaris going to go through the floor and it's going to take the bond market with it and the next crisis, it's not subprime mortgages, it's going to be in the Treasury market," he added.
Read: Stocks rise as bullish earnings, retail sales offset trade issues (http://www.marketwatch.com/story/stock-futures-erase-gains-after-china-vows-retaliation-for-us-tariffs-2019-08-15)
In his latest podcast, Schiff detailed his outlook as to why he sees gold , which has already risen about 20%, rallying hard from here.
"This trade war is lost," he said. "The only question is when do we surrender and how do we admit defeat. Again, I don't think we're going to get any kind of deal."
With the mainstream buzzing with recession fears, Schiff points out that investors are calling for the Fed to cut rates and go back to quantitative easing. But, he warned, this won't have the impact of prior QEs, where everybody makes money.
"Everybody is weakening their currency to create more inflation," Schiff, a longtime gold bug, said. "Well, what's going to happen? The world is going to drown in an ocean of inflation and gold is going ballistic."
Read:Gold pulls back from highest levels since 2013 as market gains (http://www.marketwatch.com/story/gold-edges-lower-as-stock-market-attempts-bounce-2019-08-15)
Listen to the whole podcast:
Schiff was credited for having called the housing crisis back in 2006, but he's also had plenty of misfires since then. For instance, in a call slammed by the Foundation for Economic Education as one of the five "worst economic predictions in history (https://fee.org/articles/5-of-the-worst-economic-predictions-in-history/)," Schiff in 2010 foretold that the Fed's quantitative easing would lead to hyperinflation and the destruction of the dollar .
-Shawn Langlois; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 17, 2019 11:02 ET (15:02 GMT)
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