"A ticking time bomb:" Why Peter Schiff says this market rally is a trap

Peter Schiff warns that the market rally—with the US S&P 500 at all-time highs—is unsustainable and likely a “trap.” He says the rise is driven by hope rather than fundamentals, calling stocks overpriced and predicting an imminent correction that could evolve into a U.S. dollar and sovereign debt crisis. Schiff warns geopolitical and economic headwinds will damage the U.S. economy, fiscal credibility, interest rates and inflation. He advises investors to take profits and shift allocations toward foreign stocks, bonds and lower-risk assets to mitigate downside risk. The commentary signals a bearish institutional outlook that could weigh on risk assets if his scenario gains traction.