Is Gary Shilling changing his tune?
In a pleasant surprise (or eighth sign of the apocalypse), Shilling, known best for his bearish take on markets and economies, has a few sectors he actually likes. And one, detailed in his latest book, “The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth and Deflation,” is raising some eyebrows—the investment advice and financial planning sector.
“People are deciding that they need help and that ‘do-it-yourself’ hasn’t really worked,” Shilling (left) told AdvisorOne on Monday. “It might have been true in the 1980s and 1990s, when corporations were restructuring, profits were growing exponentially and there was a huge P/E expansion, but that’s no longer the case, and really hasn’t been since 2000.”
The investment play is a “twofer,” Shilling acknowledged, offering education and a firewall against the client’s own worst instincts, while at the same time providing the possibility of a positive impact to the investment portfolio.
“By seeking the help of an advisor, the client might be tempered from jumping in at the peak of a bubble,” Shilling said.