**: Global Market Broadcast.
Legendary market prognosticator Gary Shilling Legendary market prognosticator Gary Shilling recently warned that the S&P 500 could fall to a three-year low. He believes that the U.S. economy is heading for a recession this year, and the buzz around Bitcoin and AI is grossly exaggerated.
In an interview, Shilling said: "The current ** is very expensive and very distorted. He also likened the huge weight of the "Big 7" in the indexes to the "Nifty Fifty" in the '70s, and the ambitious final value of Kodak and Polaroid.
"When people focus on a very narrow part of the project, they're essentially saying that the other parts of the project are unappealing and can get bogged down," Shilling said. ”
Shilling was Merrill Lynch's first chief economist and founded his own economic advisory and investment advisory firm in 1978. He said the S&P 500 could fall below 3,500 points, its lowest level since late 2020.
The S&P 500 was at 20% in 2022, but 24% last year, and climbed another 4% this year to an all-time high of more than 4,900 points. Over the past 40 years, Shilling has made the right decisions about market movements many times.