What are the arguments by Peter Schiff?
- Thread starter Hyofa
- Start date
Ironic thing is Peter Schiff and John Paulson predicted the exact same unraveling of the mortgage market. One guy had a near blowup experience (Schiff), the other guy made billions of dollars in his hedge fund (Paulson).
Shows how 'knowing the future before it happens' doesn't necessarily lead to the same results.
Shows how 'knowing the future before it happens' doesn't necessarily lead to the same results.
Here is an advice for him how to crash proof his account:
1. Stay in cash or
2. Short the market
Apparently he learnt that the whole world can go down together.
I don't get this about fund managers. They always want to diversify like hell. Well, indexes are diversified, so just stay out of them or be short of them. You don't have to go to foreign markets.
1. Stay in cash or
2. Short the market
Apparently he learnt that the whole world can go down together.
I don't get this about fund managers. They always want to diversify like hell. Well, indexes are diversified, so just stay out of them or be short of them. You don't have to go to foreign markets.
Like most "investors" and "fund managers", Schiff has no risk control. His plan for a commodity price meltdown and dollar rally was clearly "go down with the ship and pray". As we have seen, that's not really a good strategy during a big bear market.
People who can make good calls are two a penny. People who can make money out of their correct calls are numerous. People who can do both, whilst avoiding major blowups when their calls are wrong, are pretty rare.
People who can make good calls are two a penny. People who can make money out of their correct calls are numerous. People who can do both, whilst avoiding major blowups when their calls are wrong, are pretty rare.
He did speak of shorting the subprime ABX equity tranches though, so he should've made some money on that.
In truth his whole thesis is betting on the collapse of the US dollar and bond assets. And those are two things he are very wrong about for the moment, but may be right in the end. If he isn't overlevered and still has cash on the sidelines he may still be right in the end.
Exactly correct. Schiff himself speaks of how he is actively involved in shorting subprime back in 2006. I am sure the reason he has all his clients in high dividend paying foreign non multinational stocks is he was trying to be conservative with their money. He just wanted their money out of the Dollar. Here is the portion of a speech in which he speaks of of shorting subprime. All this stuff looks obvious now but it is incredible to be saying it so confidently back in 2006.
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