Beware of black swans, or those unexpected dreadful events. 

One black swan event that Peter Schiff, CEO of Euro Pacific Capitall, sees coming is the notion of investors abandoning the euphoria over Trump's presidency, which helped fuel the stock market rally this year.

"We've had a huge move up since the election of Trump even though prior to the election the expectation was if Trump won it [would be a disaster for markets]," he said.

When asked if the two straight quarters of double-digit earnings growth has sparked the rally in stocks this year, as opposed to solely Trump, Schiff pointed to earnings headwinds in the retail sector.

The S&P 500 is up 10.5% since the start of the year. Schiff thinks the markets could easily correct 20%.

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