U.S. company stocks are reaching new highs. However, renowned economist Peter Schiff in his latest status claims that in real terms they are still in a historic correction market when measured against gold, reported Finbold.

Schiff warns that stocks are in a downtrend

According to Schiff’s analysis, the Dow Jones Industrial Average, when adjusted for gold value, fell more than 24% in 2025. That represents approximately 33% since the end of 2023 and nearly 70% from levels seen in 2000. With this comparison, Schiff challenges the traditional view of a thriving bull market.

The economist emphasizes that inflation creates the illusion of high returns. Indices such as the S&P 500, Dow Jones, and Nasdaq are rising in dollar terms, but real returns are lower because the purchasing power of dollars is declining. According to him, gold reveals the true weakness of stocks and warns that long-term government spending, growing debt, and loose monetary policy reduce the value of dollars and the real value of equities.

U.S. stocks are in a historic bear market that is far from over. Priced in gold (real money), the Dow Jones is down over 24% so far in 2025, 33% since the end of 2023, and 70% since 2000. The “bull” market is merely an illusion created by inflation. Gold exposes that illusion.

— Peter Schiff (@PeterSchiff) September 23, 2025

According to data from TradingView, gold has appreciated by 41% over the past year, while the U.S. stock index S&P 500 grew only 16%. This means that gold outperformed stocks by roughly 2.5 times. This significant difference highlights how a traditional safe-haven asset can provide higher real returns during periods of inflation and stock market volatility.

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Price versus value

According to Schiff, stock gains in dollar terms are often only nominal, while real wealth may stagnate or decline. Money experts warn that inflation and expansive monetary policy generate illustrative wealth that has no lasting value. Therefore, it is crucial for investors to monitor gold and other safe-haven assets to better understand the real state of the U.S. market.

It is important to note that inflation causes the purchasing power of money to decline. Even if stock prices rise, their real value may not increase proportionally. Therefore, it must be adjusted for inflation. According to data from TradingEconomics, inflation in the USA reached 2.9% in August 2025 and remained above 2% throughout the year. This means that part of the stock price growth is only nominal, artificially inflated by inflation, and real returns are lower.

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