The US stock market has rallied for a second day in a row on hopes that the Covid-19 pandemic is slowing and the global economy is getting back to business. Not so fast, CEO of Euro Pacific Capital Peter Schiff tells Boom Bust.
“Well, I tend to doubt it,” Schiff says, discussing whether this is the turning point for the market. “Too many people are focused on the pin and ignoring the bubble that the pin pricked.”
He explains that, before the coronavirus shutdown, the US economy was long overdue a severe recession and Wall Street was long overdue a bear market.
“So, I think the Covid virus simply accelerated the onset of both. All that’s going to happen is that we are going to return to a recession and a bear market,” Schiff says.
Talking about the stock market’s rebound, he said: “I would not get excited about this rally. I think we still have a long way to go on the downside and the economy, I think, it is going to be even worse.”
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