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article imagePeter Schiff: Rising Stocks Not A Sign of Recovery

By Andrew Moran     Aug 10, 2009 in Business
Peter Schiff, President of Euro Pacific Capital and Author of Crash Proof, predicted this current economic collapse and is now saying that higher stocks does not meant recovery.
The current rise in the stock market in the United States has ventured many analysts, including President Barack Obama, to declare that recession is nearing its end however; one man does not think it is coming to an end but just beginning.
Peter Schiff told Money News Monday, “In fact, relative to the meteoric rise of foreign stock markets over the past six months, U.S. stocks are standing still. If anything, it is the strength in overseas markets that is dragging U.S. stocks along for the ride."
The Hang Seng Index has been rising dramatically since March with 10,000 points. German Dax has doubled since March. The Shanghai Composite Index has also doubled since February.
For years now, Schiff has been investing abroad and moved out of the U.S. Dollar and the U.S. economy because of its “phony wealth” practice. Schiff called the recession two years before it was officially declared by the government.
Schiff explained at that there is an unfathomable but widely held belief that stock market movements are indicators of present and future economic conditions, “Reality is clearly at odds with these optimistic assumptions. In the current cycle, neither the market nor its cheerleaders saw this recession coming, so why should anyone believe that these fonts of wisdom have suddenly become clairvoyant?”
On Fox News, CNN, CNBC and other mainstream news networks, analysts laugh and scorned Schiff for his doom and gloom views on the American economy however, years later, he is right, “If they could not even forecast a recession that had already started, how can they possibly predict when it will end?”
Analysts now state that the recession is coming to a halt and to be bullish on the economy, Schiff believes the worst is yet to come and that hyperinflation is the next major factor to draw concern for Americans.
He has advised people to buy commodities, specifically gold and silver to protect against inflation, and invest abroad in places like China, Australia, Canada and Singapore and to buy Swiss Francs, Australian Dollars and Singapore Dollars.
Peter Schiff will be running for Senator in the state of Connecticut against the current five-term Senator Chris Dodd in 2010.
More about Peter schiff, Senate seat, Economic collapse
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