Gloomy Gary Shilling expects operating earnings of S&P 500 firms to drop to $80 this year,...

|By:, SA News Editor

Gloomy Gary Shilling expects operating earnings of S&P 500 firms to drop to $80 this year, ensuring a major bear market with a P/E ratio low of ~10, which implies an S&P index at ~800 - a 43% drop from its recent level. Meanwhile, Shilling is sticking with his "quartet" - long Treasurys, short stocks, short commodities, long the dollar.