"Best of a Bad Lot": Dollar Will Soon Be Worth As Much the Euro, Says Gary Shilling Posted Feb 09, 2010 12:57pm EST by Peter Gorenstein in Investing, Recession Related: udn, uup, ^ftse, vgk, euo, fxe Late last year, very few investors other than our guest Gary Shilling of A. Gary Shilling & Co. were predicting big things for the U.S. dollar.
As is often the case when sentiment tilts too far in one direction, the dollar is enjoying a nice rally to end 2009 and start 2010, thanks in part to Euro's problem with Greek debt.
Reports of a rescue for Greece is giving the Euro a bounce today versus the dollar. However, Shilling is not about to buy Euros; believing in tough times, investors will continue to flee to the greenback, simply because it's "the best of a bad lot."
With that in mind, Shilling is short the euro and long the dollar. As he tells Henry in this clip, dollar - euro parity is in the offing. "It will go down to one to one," he declares. 8 votes|Recommend this