Peter Schiff: Trump Trade Is Over, Buy Gold Instead
Euro Pacific Capital CEO Peter Schiff is out with a bearish call on U.S. equities today, saying that the so-called “Trump Trade” is done and over with.
In fact, Schiff told CNBC that it’s time to dump stocks and buy gold instead:
“Remember that early in the Trump trade, you had a strong dollar. The dollar has surrendered 100 percent of its gains post-Trump’s election,” Schiff told CNBC. Additionally, “year to date the S&P is up, [but when] priced in gold the S&P is actually down.”
So instead of staying in the U.S. stock market, Schiff is urging investors to buy bullion, which “is up more than the Dow and more than the S&P,” with the yellow metal having rallied 11 percent this year. Gold rose to its highest price since the end of April on Friday, thanks largely to the continued drop in the U.S. dollar.
Along with gold, Schiff also says to look beyond U.S. borders for better returns. The fund manager sees emerging market strength continuing throughout the rest of the year, outpacing U.S. stocks by a wide margin.
