Peter Schiff appears on Kudlow and Company to discuss the economy, good investments and forecasts for the future.
I think if you want to reall know what’s going with US Stocks you’ve got to price them in gold. The market continues to lose value. It’s an illusion that the central banks have created.
Kudlow: Now that’s prospective inflation, because right now inflation is falling.
No, no no. Inflation is the increase in the money supply. The price increases are the result of inflation and they’re coming.
Even after coming under attack recently from deflationists, Peter Schiff is sticking to his guns. He makes an important point here, that inflation does NOT mean prices increase, but rather, that money supply is expanded. This is obviously happening to the tune of $8 Trillion plus. The end game of this strategy points to increased prices in the future, be it one year or three years down the road.
Kudlow asks his guests what investments they are in. Two of his guests, who seem to be of mainstream thought, suggest holding domestic US high caps and… get this… financials!
Peter Schiff’s investment strategy comes as no surprise to this who follow him. Kudlow, knowing exactly what Peter Schiff’s response will be, asks him to suggest an investment ‘besides gold’:
Well, silver looks really good. I like the gold stocks. I love Asia. I love the high yielding Asian equities. A lot of the China plays that got beaten up. There’s a lot of good companies that are trading for ridiculuous prices. Just stay out of the US markets – it’s a disaster waiting to happen. I’m buying foreign currencies, precious metals and commodities.