Peter Schiff Flags 'Big Risk' For Stock Market's Record Run, Warns Of 'False Belief' About Inflation War
Portfolio Pulse from Shanthi Rexaline
Economist Peter Schiff warns of a significant risk to the stock market's record run, citing a 'false belief' about the victory over inflation. He points to a potential breakdown in long-term Treasuries and a breakout in oil prices as indicators. The yield on the 10-year Treasury note has seen fluctuations, and crude oil prices are rising. Schiff questions the claims of diminishing inflationary pressure and suggests that the Federal Reserve may need to maintain a hawkish stance, posing risks to the economy and the stock market. The iShares TIPS Bond ETF (TIP) saw a slight decrease in its latest session.
February 09, 2024 | 8:06 am
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The iShares TIPS Bond ETF (TIP) experienced a slight decrease, closing down 0.08% at $106.48, amidst concerns over inflation and Treasury yields.
Given the focus on inflation and Treasury yields, TIP, which tracks inflation-protected U.S. Treasury bonds, is directly impacted. Schiff's warning about inflation and the economic outlook could lead to increased volatility or a negative trend for TIP in the short term, as investors reassess the inflation outlook and its impact on inflation-protected assets.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80