“The U.S. stock market rally is ending,” said Schiff. “It’s a bubble that is going to deflate.”
Since the November election, the Dow Jones Industrial Average has surged over 12%. Additionally, the S&P 500 has added over 9%, and the Nasdaq has soared 13%.
But Schiff thinks the markets are extremely overinflated due to “investor optimism.”
“We are not getting the Obamacare repeal, we are not getting the comprehensive tax reform, I mean we are not getting anything and still the stock market has not surrounded any of the gains from the Trump rally that was based on the expectation of a bunch of things that will not happen. What is going to happen is a recession!” wrote Schiff on his blog April 12.
However, according to Schiff, the real impetus that will topple this economy has already begun…