In a podcast earlier this month, Peter Schiff called the end of the bear market rally. He reasoned that the rally was built on expectations that the Federal Reserve was shifting toward an easing cycle. When Jerome Powell came out and threw cold water on that, Peter figured that would be the end of the market rally. As he put it, "What the Fed giveth by being more dovish than the markets expected, the Fed had finally taken away by being more hawkish."

In that podcast, Peter said he didn't believe that the Fed was nearly as hawkish as it was projecting, nevertheless, it gave that impression.

Fast-forward to today and the S&P 500 and the Dow Jones are both down about 5.5% from their early-May highs.

I still think we are in a bear market. I do not believe that the rally that we had following the Fed's pivot constituted a brand new bull market that is now already probably overand this is a new bear market. I think this is the same bear market."

Peter said it did surprise him a bit that the bear market rally went as high as it did. But he thinks things are beginning to turn back and that we will eventually revisit the lows we saw early this year. That will prompt the Fed to once again come to the markets' rescue. In fact, the markets are already pricing in rate cuts even though Powell and company took them off the table.