Gary Shilling: Investing Advice for a Deflationary Economy
Gary Shilling, president of A. Gary Shilling & Co. and a well-known market bear, has been focused lately on the same theme. He recently came by our offices at DailyFinance to explain why the U.S. economy is on the cusp of deflation.
In the video below, Shilling gives his views on how people should invest in a deflationary environment. Among his suggestions: long-term treasury bonds, which he says could provide higher returns than stocks.
What about stocks? Shilling says there are better places to be, but if you insist on stocks, buy dividend stocks, because over the long term, dividends could be where the gains come from. Shilling also recommends buying shares of consumer staples companies. Regardless of what happens in the economy, people are always going to have to do laundry and brush their teeth.