Veteran economist and gold advocate Peter Schiff has voiced his concern about the recent weakness in US technology stocks, warning investors to refrain from assuming that it will be contained to the tech sector. According to Schiff, the impact could soon spread to the broader equity market.
Taking to X, Schiff highlighted that while technology stocks have been under pressure, the broader market has continued to show resilience. He noted that the Dow Jones was up more than 400 points despite the selloff in tech stocks. Despite the rise, he did not hold back from indicating that the strength may not last for long.
“Despite the tech market carnage, the broader stock market is still holding up well, with the Dow Jones up over 400 today. I expect that to change as the correction spreads. The entire U.S. stock market is overpriced, not just tech. I also expect a much bigger selloff in Bitcoin,” Schiff wrote.
His remarks have come at a time when technology stocks are experiencing heightened instability, with concerns over stretched valuations remaining at large.
Schiff also mentioned his view on Bitcoin, predicting that the cryptocurrency could witness further decline, much more steeper than the stock market, if risk appetite weakens more.
Being a gold advocate, the economist has constantly advised investors to favour traditional safe-haven assets such as gold over speculative investments.
The latest warning has added to the debate over whether the weakness in technology stocks is a temporary correction or the beginning of a broader market downturn. While some analysts believe strong corporate earnings and resilient economic data could continue supporting US equities, others have cautioned that rich valuations leave markets vulnerable to sharp corrections.
