Peter Schiff, chief economist at Euro Pacific Asset Management, stated on X on Monday, November 2, 2026, that investors are not adequately preparing for potential inflation following a Democratic victory. Schiff wrote, “The odds of the Democrats winning the Senate are now 75%. Investors are underestimating how inflationary a Democratic Congress will be. They assume gridlock. We won't be that lucky. Trump is more Democratic than Republican and will sign into law anything they pass. Got gold?” His post directly challenges the prevailing market assumption of political gridlock.
Schiff's comments arrive as market participants consider the implications of upcoming elections on economic policy and potential inflationary pressures. Recent Gokhshtein coverage has explored how political developments, such as a report on Trump's Canada trade 'concept,' leave bond markets guessing on inflation paths. Another report noted that an oil decline lifted equities and bonds as Iran diplomacy eased inflation risk. The broader market sentiment, as reflected in the Crypto Fear & Greed Index, currently registers at 37, indicating a state of “Fear.”
Schiff's view suggests that a Democratic Congress, potentially with a Republican President like Trump, could lead to fiscal policies that fuel inflation, contrary to market expectations of legislative gridlock. His remarks imply that investors should consider strategies to hedge against rising prices, such as holding gold, which he explicitly asks about in his post. He believes that President Trump would be amenable to signing Democratic legislation, thereby enabling potentially inflationary spending or policy initiatives without significant political opposition.
