Young Peter Schiff - How to Invest in a Bear Market (2002)

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This decade is going to be worse than the 1970's. There was a huge expansion of money back then, but the inflation in the money supply during the 1990's was even greater. It blew up an even bigger bubble, and it will hurt even more when it finally pops.

Many people will be devastated by this event. They take a look at their retirement portfolio, and the number on their account makes them feel wealthy. However, that number means absolutely nothing. You still have to sell your stocks. If you are purchasing stocks without dividends, then you are speculating, not investing. Stock ownership means that you own a business and share in the business's profits.

Right now, stocks are high. Stockholders take more risk than bondholders. There is no reason to ever own a stock unless the dividend yield is higher than the yield on the bondholders. Wall Street has brainwashed everyone into thinking that they don't need dividends.

Many people are hesitant about investing their money overseas. They typically want to invest into something that they can see in the world. However, now that people have seen companies like Enron or WorldCom go completely bust and bankrupt their stockholders, they are starting to wake up and to realize that there are huge risks to investing in the United States. Even worse was that people were told to buy stocks of these companies from their money managers and Wall Street analysts.

Mutual fund managers don't care about protecting your money or making lots of money for you. They get their money from fees. They want to meet their benchmark, so they have to buy the same bad stocks along with everyone else. They want the quoted value of your portfolio to be high so that they can get a higher percentage fee. When your portfolio tanks, they have already collected their fees. Any investor should discount the short run and always invest for the long run. But mutual fund managers do the opposite. Their incentive is to always focus on the short term.

Category:

News & Politics

Tags:

• Peter Schiff
• Marc Faber
• Gerald Celente
• Max Keiser
• Treasuries
• Government Bankrupt
• Financial Collapse
• Economic Collapse
• Financial Crisis
• Economic Crisis
• Gold
• Silver
• Dollar
• Federal Reserve
• ron paul
• john stossel
• judge napolitano
• inflation
• hyperinflation
• interest rates
• capitalism
• free markets
• austrian economics
• enron
• worldcom

[E11evenz11]

I mean when you're right for the last 9 years I think you've proved your doubters wrong.

[johammbass]

A fucking LEGEND! Bravo!

[Stillingon]

This guy really understands the economy...

[europa]

@jimbo525SE

due to the stimulus (inflation) prices nominally will go up but weighed in commodities they will collapse

Gold/ silver

Oil

and the USD index are the 3 best ways to measure purchasing power

[Rawego]

incredible foresight Peter, but listening to you it's just common sense, if you're a genius of course :))

[diurdi]

@diurdi And if you look at how DOW has performed vs. commodities and other currencies, it has declined sharply.

[diurdi]

@jimbo525SE In his 2006 speech to mortgage brokers he tells them that it's largely irrelevant what the DOW is in terms of $, but instead compare DOW the Gold, Oil, Foreign Currencies and other commodities.

[TheBlitz1]

@jimbo525SE That's not the prediction for the bursting of the housing bubble, thats the prediction for the bursting of the bond bubble.

[jimbo525SE]

I hate to say this, but Peter Schiff was wrong. The down didn't go to 2000. It never dipped below 7000.