‘People Are Really Scared’: Gary Shilling Sees Warning Signs for Economy, Stocks
What You Need to Know
- Shilling says consumers are “very cautious,” not a good sign for a consumer-led economy.
- The housing market is beginning to cool, the economist and advisor says.
- He says the stock market is vulnerable to a correction, cryptocurrencies to a government clampdown.
Don’t expect a rip-roaring second-half economic surge, says economist and investment advisor Gary Shilling.
“The consumer in this country is very cautious,” he says, noting the 1.3% drop in May retail sales and the growing decline in spending levels of government stimulus checks.
The Federal Reserve Bank of New York reported that consumers on average spent 24.7% of their stimulus checks from this March compared with 25.5% of their January 2021 checks and 29.2% of their checks from last June, choosing instead to save more and in January especially to pay down debt.
“People spent only a fraction of their stimulus checks and there was…
