Tuesday, December 22, 2009, 9:09PM ET - U.S. Markets Closed.

The Market's Going to Crash: Here's What to Buy

Posted Jul 15, 2009 03:16pm EDT by Henry Blodget in Investing, Recession

Our guest Gary Shilling is gut-wrenchingly bearish on the stock market. Specifically, he thinks the S&P is going to fall 35% to 600 by the end of the year.

The good news is Gary thinks there are some things you can buy without losing your shirt:

  • Treasuries
  • The dollar

But isn't inflation going to turn dollars and Treasuries into toilet paper? That's what everyone's saying.

They're wrong, says Gary. It's deflation we have to worry about. For the next 10 years, we're going to have chronic deflation, and the economy is going to grow at a paltry 2% per year.

See Also: Gary Shilling: The Stock Market Will Crash As Consumers Retrench

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257 Comments

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 15, 2009 03:22PM EDT

Shilling should may be join his friend Madoff

RobertK
RobertK - Wednesday July 15, 2009 03:23PM EDT

Man, Gary Shilling has become delusional lately.

Tex
Tex - Wednesday July 15, 2009 03:23PM EDT

The sky is falling! The sky is falling.

Wehrmeister2000
Wehrmeister2000 - Wednesday July 15, 2009 03:24PM EDT

Maybe. I can see this happening. I am bearish leaning, 90% cach for most of the year. Missed the swing up in March, but am still up for the year overall. I am still waiting in the wings. I only risk what I can afford to lose. (which to me makes sense, and other's say that is stupid -- they can risk what they can't afford to lose because they believe in the 'bailout' God...)

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 15, 2009 03:24PM EDT

Wht dollar? $ is down down down...

Pieter
Pieter - Wednesday July 15, 2009 03:25PM EDT

Rationally he is right. But with enough money created he is wrong. And it doesn't have to go to the people, banks can also buy stocks. Maybe one last bubble in stocks? I don't know, that's why I buy gold stocks, it's their time, inflation or deflation, doesn't matter.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 15, 2009 03:26PM EDT

No, because the gov't has all the answers. Where's my G.I. pink pony anyway?

- Wednesday July 15, 2009 03:26PM EDT

Absolutely correct. This is a bear market rally

Bruce F
Bruce F - Wednesday July 15, 2009 03:27PM EDT

WHO ID GARY SCHILLING/

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 15, 2009 03:29PM EDT

Gary, honestly the dollar is in real trouble...on which planet you have been living recently?

Jennifer
Jennifer - Wednesday July 15, 2009 03:30PM EDT

in all reality, the fact that Yahoo even posts articles with titles like this, is outright absurd. I cant wait to see the next three articles.. "Civil War 2: here we come", "You thought 1929 was bad, wait until you see 2029!" and finally, their latest article, "Watch out you are going to be hit by a bus".

Jennifer
Jennifer - Wednesday July 15, 2009 03:30PM EDT

in all reality, the fact that Yahoo even posts articles with titles like this, is outright absurd. I cant wait to see the next three articles.. "Civil War 2: here we come", "You thought 1929 was bad, wait until you see 2029!" and finally, their latest article, "Watch out you are going to be hit by a bus".

Marla
Marla - Wednesday July 15, 2009 03:30PM EDT

When will this guy give it up already. Amazing, how Tech Ticker wakes him up out of bed on an up day like today. Really, he needs to move on from his 600 prediction already. I guess Tech Ticker can't find anyone else at this point who wants to embarass themselves by saying "600" for the S & P this year.

Marla
Marla - Wednesday July 15, 2009 03:31PM EDT

When will this guy give it up already. Amazing, how Tech Ticker wakes him up out of bed on an up day like today. Really, he needs to move on from his 600 prediction already. I guess Tech Ticker can't find anyone else at this point who wants to embarass themselves by saying "600" for the S & P this year.

Richard
Richard - Wednesday July 15, 2009 03:32PM EDT

My G-d, the sky is falling, the sky is falling. Where is my crystal ball?

sirdon2
sirdon2 - Wednesday July 15, 2009 03:33PM EDT

The market will go up for a while till unemployment and commercial loans crash. Then say look out below.

leonardk
leonardk - Wednesday July 15, 2009 03:35PM EDT

Nonsense could be told by a charlatan. Who the hell is Gary Schilling?

Art
Art - Wednesday July 15, 2009 03:37PM EDT

It will be stagflation not deflation with inflation and high unemployment. The stock market is a good inflation hedge. When will they fire Shilling?

donfurio
donfurio - Wednesday July 15, 2009 03:37PM EDT

This guy may have been right about housing, but earlier this year he said the S&P was going to 450-500, and he was dead wrong about that.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 15, 2009 03:38PM EDT

HA HA HA! More gloom and doom from Short Ticker. Face it, Henry, it's time to close out your short positions, take your losses, and lick your wounds. Better luck next time.

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