Markets: Jamie Dimon Is Wrong, High Yield Bonds & Treasuries

The market has got to be telling us that not only we are in a bear market but we are in a recession, the market is forward looking, the market is telling us that we are in a recession. In fact, the bond market is telling us that.

I was watching Jamie Dimon on CNBC, he was talking about why he saw value in the high yield bond market and he is looking at the spreads between high yield and Treasuries and he is saying, the high yield market is priced as if we were in a severe recession and therefore this is a great bargain because we all know that we are not in a severe recession, we are not even in a recession, the economy is going to grow 2 to 3 percent this year. Everything is great yet the bonds are priced as if there is a recession. Maybe the reason that the bond market is priced as if we are in a severe recession it is because we are in a severe recession. That would make sense because why are the bonds priced as if we are in a severe recession? Because we are! All the economic data that we keep getting shows that.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.