S&P 500 Could Plunge 30% and Recession May Be Underway, Says Market Forecaster Gary Shilling
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The S&P 500 could plunge 30% and a US recession may already be underway, according to market prophet Gary Shilling.
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Shilling predicts the Federal Reserve won't cut interest rates before summer, but sees rates returning to 1-2% eventually.
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He recommends Treasuries over gold, expects corporate earnings to weaken further, and sees more layoffs ahead.
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Shilling believes the economy has been propped up by government programs and employers reluctant to conduct layoffs.
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He argues there's been too much optimism about a soft landing for the economy and rate cuts coming soon.