Right Forecast, Wrong Trade
The WSJ profiles ‘doomsayers who got it right’ – well, almost:
[Peter Shiff] has been wrong on significant parts of his argument. Many detractors point out that two of his core beliefs—a longstanding prediction that the dollar would collapse and that foreign stocks would outperform U.S. shares—have been well off the mark in this crisis. A rush into the safety of the greenback sent the dollar soaring against other currencies and, as a side effect, helped undermine shares of stocks around the world.
Mr. Schiff acknowledges that he wasn’t expecting that to happen. But he says his worries aren’t misplaced: A dollar dive and foreign-stock outperformance are still in the cards.
posted on 02 January 2009 by skirchner in Economics, Financial Markets
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