Wall Street tycoon Peter Schiff: US stocks may face the ultimate crash, can switch to allocation of precious metals

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Source: Jintou Data

Wall Street tycoon and Euro Pacific Capital Chief Global Strategist Peter Schiff warns that investors entering the market now are stepping into a market trap. As the US stock market continues to set record highs, most participants are ignoring all sorts of major risks,

In a media interview, Schiff said that although many investors have misjudged the market, this hasn’t stopped indices from continuously rising. The vast majority still lack understanding of the market fundamentals, blindly buying stocks. The uptrend has been extremely strong: over the past five years, the S&P 500 Index has risen 80% cumulatively, while the tech-heavy Nasdaq Index surged 96%.

In his view, the current stock rally is on shaky ground. In the long run,

He believes what the market is about to experience is not a standard adjustment. Even without considering various risk factors, current US stock valuations are already too high. Coupled with numerous hidden dangers, the entire market is like a ticking time bomb ready to explode at any time. Investors are ignoring warning signs, stock prices are rising purely on market optimism, detached from the real economy’s fundamentals.

Schiff points out that risks are not only present in the stock market; the US economy is now deeply troubled, and could soon face a financial crisis,

At present, US national debt has reached $39 trillion and is still climbing, with worsening fiscal conditions continuously amplifying risks.

Asked whether the US economy is still resilient or has simply delayed recession, Schiff replied bluntly,

.

He further suggested that the US has, in fact, been in recession for years, with official economic data masking the real difficulties.

When asked if his bearish view could be overturned, Schiff said that many of his earlier warnings have already come true; the only scene left is the final market crash—an inevitable result of the previously accumulated risks.

As a renowned contrarian investor who accurately predicted the 2008 financial crisis, Schiff once again reminds investors not to assume that the current bull run can continue simply because of the gains they’re seeing on paper.

For ordinary investors concerned about market risk, Schiff gave a clear suggestion:

Gold, as a classic safe haven asset, has been used long-term to hedge inflation, a weakening dollar, and financial market turmoil. It doesn’t depend on corporate profits, doesn’t require issuers to make good on redemption, and cannot be

by central banks. Thus, at times of soaring debt, geopolitical instability, or looming market collapse, it is always favored by capital.

Schiff says that, with the de-dollarization led by central banks, the gold price has steadily risen, and personal and institutional investments will continue to increase. Despite a recent pullback, gold has still surged over 35% in the past twelve months.

Jamie Dimon, CEO of JPMorgan Chase, is also bullish on gold, believing that

Editor: Zhu Henan