Peter Schiff destroys on CNBC
 

video, euro pacs webpage

My favorite line

"but peter, I don't buy anything with canadian dollars"

Re: Peter Schiff destroys on CNBC
 

"but we are at a new record!..."

Re: Peter Schiff destroys on CNBC
 

The level of the Dow doesn't measure the strength of the USD right?

As I understand the Dow is just an arbitrary number that doesn't relate to other economies.

Like if the Fed keeps cutting the rate to encourage borrowing and spending and building, etc. the Dow will reflect a "growth", but the strength of that growth compared to other World economies isn't quantified in some cute little number like 14,000.

I'm a noob at this stuff so tell me if I'm wrong or right.

Re: Peter Schiff destroys on CNBC
 

[ QUOTE ]
The level of the Dow doesn't measure the strength of the USD right?

As I understand the Dow is just an arbitrary number that doesn't relate to other economies.

Like if the Fed keeps cutting the rate to encourage borrowing and spending and building, etc. the Dow will reflect a "growth", but the strength of that growth compared to other World economies isn't quantified in some cute little number like 14,000.

I'm a noob at this stuff so tell me if I'm wrong or right.

[/ QUOTE ]

on average, the strength of the dollar is probably uncorrelated to changes in the dow (or the level of the dow). there are a ton of factors that could explain positive and negative correlations but overall i'd think it would be a wash. if not, it would be a very small positive or negative overall correlation.

you could test this by looking at a chart of the level of the trade weighted dollar index vs. the level of the dow, the changes in the trade weighted dollar index vs. level of the dow, and the changes in the trade weighted dollar index vs. changes in the dow back as far as you can get data.

Barron

Re: Peter Schiff destroys on CNBC
 

The Dow is just an index of 30 industrial stocks. It's not arbitrary, there's a complex formula used to calculate it. There are multinationals like GE that are affected by currency exchange rates, but it's mostly US dollar denominated.

Re: Peter Schiff destroys on CNBC
 

[ QUOTE ]


"but peter, I don't buy anything with canadian dollars"

"but we are at a new record!..."

[/ QUOTE ]

These are pretty naive points made by the presenter & Larry.

It's not true that Americans don't buy anything with Canadian dollars, or any other currency. Many goods are imported into the US, and these goods are generally priced in that country's currency. A declining $ is a significant source of inflation for Americans.

The Zimbabwe Industrial index has climbed from 50000000 to 150000000 since early summer this year; a rise of 200% to reach record highs. So if Larry is so excited about high stock index valuations, then maybe he should plough into The ZSE.

Peter Schiff has been saying the same things on CNBC for years, and gets the same responses from the presenters and opponents. Nobody seems to listen to the fact that the people for whom he manages money have really cleaned up the past 5 or 8 years.

If people are happy to be invested in something that's increasing in value a little rather than something that's increasing in value significantly, then that's their choice.