Peter Schiff Rebuttal- A Response to His Critics

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DavidLachman's picture
DavidLachman
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Peter Schiff Rebuttal- A Response to His Critics

I'm not sure if this was posted somewhere on this site already, but it is interesting to read Peter Schiff's reply to what I'm guessing is the Mish article that pans him.

http://www.gcnlive.com/NewsStory/4.html

 

 

watsondog's picture
watsondog
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Re: Peter Schiff Rebuttal- A Response to His Critics

Well it is tempting for me to comment on Schiff since have read his 2 books and I am a client of his who has lost about 60%. The idea is to buy foreign high-dividend-paying stocks on foreign exchanges so that the dividends are paid in their currency. When converted back to the dollar you not only get the dividend but the gain in currency as well. It is a good theory but the foreign currency went down against the dollar starting in July 2008 not to mention the share price plunge of the stocks themselves.

What is missing here is the big macro picture. If the dollar tanks this will work out great. Now would be the time to invest that way. He is getting a sore throat over defending his position and now has to explain why everyone is losing money.

Add to that the foreign countries take out 10-25% withholding on those dividends, then the IRS takes its cut and you have to deal with it all at tax time.

When I complained to my broker about the return he said long term I would be better off to hold because they believe the dollar will fall. Since I believe that, too I did not liquidate the positions. I believe there is merit to his claim so I’m just filing away the statements. We shall see.

 

mainecooncat's picture
mainecooncat
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Re: Peter Schiff Rebuttal- A Response to His Critics

Hi, David, this was mentioned briefly but didn't get much play. Maybe it will as a forum topic.

bearing01's picture
bearing01
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Re: Peter Schiff Rebuttal- A Response to His Critics

I read both of Schiff's books.  I don't have an account with Euro-Pacific.  I do my own foreign investments in high dividen paying stocks.  The dividens I collect in foreign currency I just buy more shares with.

Your portfolio may look bad today if you take a snap shot look.  Not just with Schiff but with anyone.  Rememer, you're investing for the long term and not speculating.  If your plan was to buy low and sell high then the Schiff strategy may not be right for you.  Schiff's strategy is basically to buy foreign assets that will survive a US dollar crisis.  Schiff isn't a trader and he doesn't claim to have any ability to time when things will occur.  He is investing based on long term economic fundamentals and his predictions are based on classical economic theory.

The US dollar is a flawed currency that is currently in a crisis. 

Set's picture
Set
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Re: Peter Schiff Rebuttal- A Response to His Critics

I believe that Peter Schiff, like Ron Paul will be vindicated by the masses in the future.  Too many of his adversaries are short sighted and use every opportunity to kick him when he's down while ignoring him when he's up.  This approach to debate might fool a fool into believing that his message and strategies are wrong, but the wise have more patience and are informed enough to understand that his long term strategies as based on knowledge that is becoming more and more obvious and clear everyday despite the main stream media's attempts to discredit him. 

His vindication could very well be bittersweet as it is based on seriously “black swan” scenarios that will be a cause of an enormous amount of suffering by the masses who rely on the main stream media for their information.  I go to his website on a regular basis to watch his performances on the main stream and he defends himself quite well.  He makes every show he's been on available in the "video interviews" section. 

Ref.  http://europac.net/

A good video to watch regarding the accuracy of the reporting on the corporate owned main stream media is titled, "Orwell Rolls in His Grave."  This video can be found at this site:

http://video.google.com/videosearch?q=mainstream+media&hl=en&emb=0&aq=0&oq=main+stream+media#

This is why I rarely ever even turn on the TV anymore. 

 

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Re: Peter Schiff Rebuttal- A Response to His Critics

The last thing I would do is invest anything, anywhere..... 

And I haven't.

Mike. 

Amanda V's picture
Amanda V
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Joined: Dec 31 2008
Posts: 262
Re: Peter Schiff Rebuttal- A Response to His Critics

Mike

I have been reading these posts for a wee while, and I see you comment quite a lot.  But I still cannot figure out what the matrix is.  Could you please enlighten me ?  And let me know why I should damn it ! Thanks.

gregroberts's picture
gregroberts
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Re: Peter Schiff Rebuttal- A Response to His Critics

AmandaPops

Watch the movie, "The Matrix" and it will answer both of your questions.

Greg

malpert's picture
malpert
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Re: Peter Schiff Rebuttal- A Response to His Critics

The role of the innovator is to move ahead of the market.  He will not be comforted by media cheerleading.   He will not be quickly imitated.  He will be subject to the ebb and flow of technical forces until that elusive long run catches up to the present.

Below is an amusing link to an investor blog that just couldn't wait any longer.  After following Bill Fleckenstein (co-Author of Greenspan's Bubble's) for some time,  the author elected to defenestrate the Fleck-man less than 10 trading days before the market peaked in July 2007. http://www.bigmikeblog.com/2007/07/bill-fleckenste.html  

As highlighted in the 3 stages of truth, one can expect Schiff's hyptheses to be ridiculed, to be violently opposed, and only after considerable time and difficulty, to be accepted as self-evident.  

 

 

 

Kurosawa's picture
Kurosawa
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Posts: 43
Re: Peter Schiff Rebuttal- A Response to His Critics

Greg your a Dune fan I assume? (from the quote)  

gregroberts's picture
gregroberts
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Posts: 1024
Re: Peter Schiff Rebuttal- A Response to His Critics
Kurosawa
Yes, I read Dune over 30 years ago and saw the movie when it came out in the 80's. The part that stuck in my mind is,"fear is the mind killer", like when a scuba diver panics he usually dies.
Looks like you're a Nichola Tesla fan from the avatar, interesting guy.
Greg

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