If you’re not familiar with Gary Shilling you should be. Thirty years ago, Shilling had a “big idea” that inflation would go away. He made this prediction in the early 1980s, when inflation was double digits. If you had simply bought long dated, zero coupon treasuries and rolled over each year into the longest dated bonds you would be sitting on 60-fold returns on your money today.
Recently, Mr. Shilling revealed his new “big idea” in an interview with Canada’s Globe and Mail newspaper. He calls it “The Grand Disconnect:”
“Right now we’re in what I call The Grand Disconnect… The economies of the world are growing slowly… But investors couldn’t care less. All they are concerned about is the money being shoveled out the door by central banks. And I call that the grand disconnect between the real economy and investors’ view of the world.”
Shilling believes that the world economy is in bad shape and that you can’t get sustainable higher stock prices by printing money. He believes the Grand Disconnect is going to end badly…
“I think sooner or later it will be eliminated by some big shock… I think it could [be this year] but forecasting big shocks like this is obviously difficult. It’s in the cards, it’s just a question of when it will happen.”
Unprepared investors will be in for a rude awakening as the “Ben Bernanke Asset Bubble” comes to an end. Smart investors are beginning to realize this and have begun looking for alternative investment ideas that will protect and grow their capital.
Ropay Asset Investors offers investors the opportunity to eliminate market risk by owing portfolios of charged-off credit debt, an asset class previously reserved for the Wall Street Elite.
Read the entire interview…Gary Shilling On Why The Latest Rush Into Stocks Will End Miserably
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