I don’t think the downside is going to be enormous in stocks. As I said, the weak economic data, and weaker stocks, put pressure on the Fed because the Fed looks at the stock market as a barometer of the economy. As the market digests the weakening economy and the lower market, then you start to get the optimism for the release, the fix, which is QE3.
So I think QE3 puts a floor somewhere beneath the market.
But I do think the overall weakness of the US economy is going to put a ceiling on the market. So, I’m not looking for a huge run up in stocks, but I’m not looking for a collapse. But I am looking for a collapse in the dollar at some point because more QE is definitely bad for the dollar. - in BI
Related: S&P 500 Index, Dow Jones Industrials, Nasdaq 100 Index
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.