[you've lost your mind -ed]
From Pragmatic Capitalism:
Gary Shilling joined Bloomberg TV today to discuss his outlook for equities, bonds and the US economy (via Bloomberg TV):
Economist Gary Shilling spoke about the outlook for the U.S. economy with Bloomberg Television’s Adam Johnson and Stephanie Ruhle this afternoon and said that the S&P 500 will drop 43% from its recent level this year. Shilling said, “the analysts have been cranking their numbers down…I think that is true because you have foreign earnings that don’t look good because of recession unfolding in Europe, stronger dollar…a hard landing in China.”
Shilling also said that, “in the U.S., we could see a moderate recession led by consumer retrenchment.”
Shilling on his report that the S&P will drop 43% from its recent level:
“The analysts have been cranking their numbers down. They started off north of 110 then 105. They are now 102. They are moving in my direction. I think that is true because you have foreign earnings that don’t look good because of recession unfolding in Europe, stronger dollar, so they are translation losses. A hard landing in China. In the U.S., we could see a moderate recession led by consumer retrenchment. I think that that kind of earnings estimate is not unreasonable…it’s a quartet, [I am] long treasuries, short stocks, short commodities and long the dollar.”...MORE
