Five-Decade Market Pro Who Called Bond Rally Sees 1% U.S. Yields
- Gary Shilling sees Treasury gains as global rates go negative
- Former Merrill Lynch top economist says this cycle is unique
Gary Shilling.
Photographer: Jin Lee/BloombergThis article is for subscribers only.
A year ago, with U.S. equities approaching record highs and the Federal Reserve moving toward raising interest rates, Gary Shilling was a lonely voice on Wall Street predicting financial-market gloom in the 12 months ahead.
Today, the 78-year-old analyst’s calls for $20 oil and a 1 percent yield on 10-year Treasuries look increasingly likely, and he’s sticking with them. The price of West Texas crude has fallen by half to $27.62 since Shilling made his $20 prediction last February, while benchmark Treasury yields have tumbled to 1.68 percent after rising to as high as 2.5 percent in June.