Friday, May 31, 2019

Peter Schiff, Bob Hoye, Chris Waltzek Ph.D. & Robert Ian - May 31st, 2019 - Radio. A Spina-Waltzek Production-©2005-2019 Royalty free music from Google Play. Disclaimer: this show is presented only as informational content.

May 31st, 2019
Featured Guests
Peter Schiff & Bob Hoye

Interview Recap
  • Bob Hoye, Editor & Chief Investment Strategist of Charts and rejoins the show with must-hear commentary.
  • US shares are "precarious," overvalued relative to historical norms, contrary to the Oracle of Omaha, Warren Buffett.
  • Our guest insists that a 2nd Great Recession, circa 2009 could unfold if policymakers continue with the current rate cycle.
  • The market will front-run rates lower following the Fed Funds Futures contracts as soon as December / January.
  • This scenario virtually guarantees a stock market reaction and economic contraction.
  • The host finds this line of reasoning plausible, however, cautions listeners to maintain portfolio discipline.
  • Empirical evidence proves that the expected returns of portfolio investment-strategies surpass that of market timing strategies.
  • While Wall Street applauds the stock rally of 2019 as one of the most impressive, the host suggests a competing viewpoint.
  • The the magnitude and staying power of the rally at record highs represents a more accurate success measurement.
  • Peter Schiff, head of SchiffGold,Euro Pacific Capital, and Euro Pacific Gold Fund (EPGFX)returns with key insights.
  • Our guest notes the Wall Street adage, "Sell in May and Walk-away..." where investors look for bargains later in the year.
  • Peter Schiff expects a bear market to overtake US equities.
  • The trade skirmish between the US and trading partners, especially China is the root cause.
  • Investors are advised to expect two quarters of back to back negative GDP growth resulting in an economic slowdown.
  • Chris Waltzek compares the low Fed balance sheet of $500 million before the Great Recession with the current $4 trillion.
  • Policymakers failed to seize the decade long economic boom to curtail excess monetary expansion.
  • Given the inability for the Fed to liquidity, a new era of endless money printing seems imminent.
  • The guest / host concur that only two options remain for the Fed:
    1) Take the short-term pain to preserve global reserve currency hegemony by ringing the excess liquidity, $3.5 trillions off their balance sheet, inadvertently crushing the financial markets and the domestic economy while potentially sending the entire global economy into a new dark ages circa 1930's Great Depression;2) or continue on the current destructive path via renewed rate cut cycle as implied by the CME Fed Fund Futures contracts as soon as December 2019, essentially renewing QE operations further jeopardizing the global hegemony of the US dollar while sacrificing the general welfare of future generations.