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IPFS News Link • Economy - Economics USA

Peter Schiff: In a Bear Market, All News Is Bad News

• Peter Schiff-ShiffGold.com

After rallying on Friday, stocks tanked on Monday, dropping over 450 points. In fact, it was the worst first day of the second quarter since the Great Depression.

Most analysts blamed the plunge on the escalating trade war, but Peter Schiff has a different take. He said it was just another bad day in a bear market. In fact, he said the market could have rallied because the Chinese response wasn't as bad as it could have been. But when you're in a bear market, all news is bad news.

As I expected, traders came back from the Passover-Easter break and started to sell. I mean, they came in almost out of the bell. No real news to blame the sell-off on. Now, they tried to blame it on Trump and the tariffs. While I agree the tariffs are a problem, there was nothing new over the weekend. Yeah, China came out and announced a couple of billion dollars worth of tariffs on some agricultural products and stuff like that, but this is nothing that wasn't anticipated. This is no big deal. I mean anybody that didn't think this was coming – I mean – come on! They could have done a lot worse than this.  And in fact, the market could have just as easily rallied on the fact that this was such a small response  … The markets could have bought if they were in a buying mood. But this is a bear market and all news is bad news."


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