Saturday, February 1, 2014

Peter Schiff Bullish on Resource Stocks

"The U.S. economy is a bubble that will burst. In contrast to prior monetary excesses, this time the U.S. Federal Reserve has inflated simultaneous bubbles in stocks, bonds and real estate. As the Fed prints more and more dollars to keep those bubbles from popping, the dollar will lose value and eventually precipitate a financial crisis larger than the one we experienced in 2008. The U.S. dollar is being propped up by foreign central banks. But when our creditors finally understand the box we are in, they will not be willing to hold as many dollars. You don’t want to own U.S.-dollar-denominated assets, and you certainly don’t want to own U.S. treasuries or corporate bonds. You’re better off owning equities outside the U.S.

I like resource stocks like Franco-Nevada, Goldcorp, Yamana Gold, Agnico-Eagle Mines and Endeavour Silver. Many people don’t understand how much inflation is being created, and how that benefits gold. Gold is going to be several thousand dollars an ounce before the bull market ends." - in The Globe & Mail

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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