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%.

Watch the full interview with Peter Schiff:

More of What's Trending on TheStreet:

More from Opinion

Vanguard Founder John Bogle Reflected on Black Monday: Rewind

Vanguard Founder John Bogle Reflected on Black Monday: Rewind

What You Need to Know About Black Monday 31 Years Later

What You Need to Know About Black Monday 31 Years Later

Taiwan Semi's Sales Outlook: Good News for Apple, Mixed Bag for Others

Taiwan Semi's Sales Outlook: Good News for Apple, Mixed Bag for Others

Throwback Thursday: To Trade or Not to Trade Paypal

Throwback Thursday: To Trade or Not to Trade Paypal

Wednesday Wrap-Up: The Talk of the Town Is Cannabis

Wednesday Wrap-Up: The Talk of the Town Is Cannabis