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Gary Shilling: 6 Signs the Economy Is Weaker Than Investors Think

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Related: 10 of Jeffrey Gundlach’s Economic, Market Predictions for 2023

Economist A. Gary Shilling, sticking by his bearish view that the S&P 500 index will likely fall another 20% before hitting its low, suggested Thursday that the U.S. economy is already enduring a drawn-out recession and is weaker than many people want to admit.

The investment advisor also said during a webcast that he doesn’t expect the Federal Reserve to reverse its tightening cycle anytime soon.

He suggested the money that the Fed pumped into the economy during the pandemic went into “various investments including all these speculations and what we’ve seen was a tremendous runup and now complete disasters.”

Calling FTX’s collapse a “spectacular disaster,” Shilling said “it really does show what happens when investors get carried away.”

Shilling noted that non-publicly traded real estate investment trust withdrawals are up significantly.

“You can see that people are just running for the exits. In other words a lot of these things that attracted people earlier are really just disintegrating,” he said.

Check out the gallery for six signs the worst may be yet to come, according to Shilling.