Gary Shilling, president of A. Gary Shilling & Co., joins Real Vision managing editor Ed Harrison to evaluate the health of the economy and how it impacts the future path of assets such as bonds, real estate, and stocks. Shilling notes that the consensus view—that the economy is going to re-open very rapidly, that inflation is going to come roaring back, and that interest rates will go through the roof—contradicts the lessons he has learned across his storied career in financial markets. Shilling argues that the four-decade-long trend of declining interest rates on U.S. Treasurys will continue, and he shares with Harrison several investment ideas in commodities and bonds that allow investors to be cautious without being actively bearish. Shilling and Harrison also discuss trends such as working-from-home, the residential real estate boom, and the savings glut in Asian countries. Filmed on April 21, 2021.
Shilling is very bullish on bonds and views the recent rise in commodity prices with some skepticism. He has his eye on small positions and is only willing to size-up his trades once he has seen confirmation of his thesis.