Peter Schiff: Market Reality Always Wins

In his latest episode of The Peter Schiff Show, Peter responds to President Trump’s State of the Union address, laying out a simple but blunt view: markets will force corrections where policy has created imbalances. He moves through housing, market bragging by politicians, the real story on inflation measurements, the tradeoffs of income taxes and entitlement spending, and closes with a bullish case for gold, silver and mining stocks as a hedge against monetary mismanagement.

He starts with the housing market and the unavoidable math that brings overpriced homes back to earth:

Now, ultimately, the market will correct that disconnect with a drop in prices. That’s inevitable. That is the free market solution when you have overpriced homes. The prices come down because home prices are worth what the buyer can afford to pay because at the end of the day, if you have to sell your house, you can only sell based on what somebody is willing and able to pay.  

Peter uses that housing example to push back against political chest-beating about market records, pointing out how easy it is to spin numbers when the narrative suits you: