From listening to Peter Schiff on his radio show, my understanding is that he encourages his clients to invest in foreign dividend paying stocks and considers gold equities to be higher risk. He himself though is heavily invested in gold stocks because he is convinced they will offer the higher return in the long run.

His response to clients who have seen their portfolios fall in 2008 is that it doesn't matter where the stock prices are today because the dividends are still coming in. The high dividend is locked in, and today's bargain prices are just a great opportunity to add to positions. I think he got caught a bit flat footed though when the decline in Asian stockmarkets occured in parallel with the US.

Anyway, I think it'll be interesting to see if his theory holds and the Asian markets decouple from the US economy when the US treasury bubble pops. He called the housing bubble and is waiting for this other shoe to drop - if this happens his predictions will have been quite accurate I think, if a little off in timing.