Veteran market expert Peter Schiff, CEO of Euro Pacific Capital, isn’t too fond of the Federal Reserve’s easy money policies.
Schiff thinks the Fed has been inflating asset prices and won’t have the proper tools in place to “rescue investors” during the next stock market crash, like they did in the years following the 2000 and 2008 crashes.
“They were successful in reflating yet another bubble but I think this bubble will be the similar fate as the prior two,” he said in an interview with TheStreet. “The difference is, the third time is not going to be the charm – it’s going to be three strikes you’re out.”
According to Schiff, the market could still rise from here, but the eventual crash would be painful.
“Let’s say the Dow goes to 30,000, if it gets cut in half, that’s 15,000 – that’s still a low lower than it is right now,” he said.
The Dow currently stands at 22,772. A move to 15,000 represents a 34% move to the downside.
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