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He Saw the Crash Coming: What Gary Shilling Sees for 2009

Posted Dec 19, 2008 11:22am EST by Aaron Task in Investing, Recession
Related: ^dji, ^gspc, ^ixic, SPY, DIA, TLT, UUP

"These Wall Street jokers didn't see the crash coming so why should we listen to them now?"

That, in a nutshell, is the response of many Tech Ticker viewers to the 2009 prognostications of any/all guests (sometimes including the ones who did get it right).

One economist who did "see it coming" was Gary Shilling, president of A. Gary Shilling & Co. Consider these forecasts Shilling put out at the beginning of 2008:

  • 1. Sell or sell short homebuilder stocks and bonds.
  • 2. If you plan to sell your home, do so yesterday.
  • 3. Sell short subprime mortgages.
  • 4. Sell or sell short housing-related stocks.
  • 5. Sell or sell short consumer discretionary spending companies.
  • 6. Sell low-grade fixed-income securities.
  • 7. Sell or avoid most commercial real estate.
  • 8. Short commodities.
  • 9. Sell or sell short emerging market equities.
  • 10. Sell emerging country bonds.
  • 11. Buy the dollar before long.
  • 12. Sell or sell short U.S. stocks in general.
  • 13. Buy long Treasury bonds.

Now, wouldn't you like to know what Shilling is predicting for next year?

Check the accompanying video for details on his views on stocks, bonds and commodities.

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