The US will see a recession by year-end that could spark a 30% drop in the stock market, legendary forecaster Gary Shilling says
By Jennifer Sor, Business Insider
Investors should be prepared for a recession with the potential to send the stock market plummeting this year, Gary Shilling, a top forecaster, says.
In an interview with Business Insider, the Wall Street vet — who was among the investors in the mid-2000s to call the subprime-mortgage bubble — said he saw a recession coming by the end of the year as the job market continued to weaken. That could be the final blow to the stock-market rally fueled by investor overconfidence, causing stocks to drop by as much as 30%, Shilling said.