SOS Gary Shilling

Gary Shilling's new book, Age of Deleveraging

Quite similar to his 2010 predictions, for long term ( I believe he is talking about 5-15 years):

BUY

1. Treasurys (30 years) and other high quality bonds (NYSE: EDV)
   
2. Income-producing securities (PUI)
   
3. Food and other consumer staples (PSL)


4. Small luxuries (7-eleven) (RCD)
   
5. The US Dollar (UUP)
   
6. investment adviser and financial planners (PFI)
   
7. Factory-built housing and rental apartments (REZ)
   
8. Health care (FXH)
   
9. Productivity enhancers (SMH)
   
10. North American energy

For the buy items, I like 2,3,4 & 8

AVOID

1. Big ticket consumers purchases
   
2. credit card and other consumer lending
   
3. conventional home builders and suppliers


4. antiques, art, and other tangibles
   
5. bank and similar financial institutions
   
6. Junk securities


7. Low and old tech capital equipment
   
8. commercial real estate
   
9. commodities
   
10. Developing country stocks and bonds
    
11. Japan - a slow train wreck
    
12. Failing companies - In an era of slow growth and deflation, the combination of below-average revenue growth, high fixed income, and big debts can be deadly for a company. Avoid investing in flailing companies, since miraculous recovery is a less likely proposition.