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Most people associate deflation with the 1930s: depression, unemployment, and a spectacular stock market crash. But A. Gary Shilling doesn't think that deflation is all that bad--in fact, he says, if you're prepared, deflation can be a good thing. In
Deflation, Shilling outlines why he thinks we're about to enter a prolonged period of deflation and offers advice for businesses and investors on how best to position themselves and their finances and cope with the specter of falling prices.
Shilling sees several forces feeding the trend toward deflation, including the end of the cold war, reduced government spending, growing surpluses, the widespread adoption of technology, the emergence of the Internet, deregulation, and the recent Asian contagion. He also believes that the stock market is due for a severe correction that "would destroy enough individual wealth to chase consumers out of spending and into a saving spree," thereby slowing demand for goods and services and encouraging deflation even more.
Among the investments that Shilling recommends for deflationary times are treasury coupons and zero-coupon bonds, utilities, and U.S. stocks (after the correction, of course). Given Alan Greenspan's maniacal focus on fighting inflation, it might be difficult to swallow Shilling's deflationary forecast. Nevertheless, Shilling has done his homework, and it shows: he builds a case that's both convincing and easy to read. No one knows for sure what our economic future holds, but any open-minded investor would be prudent to hear Shilling out. --Harry C. Edwards
--This text refers to an out of print or unavailable edition of this title.
Product Description
Selected as one of the "Best Business Books of the Year" by Library Journal, Deflation provides tools for investors to protect their assets and invest profitably in deflationary times, a post-inflation economic environment that few of today's investors have experiencedand even fewer understand. Lively and easy-to-understand, it tells investors how to recognize telltale signs of deflation, discusses the industry sectors that are positioned to outperform the overall market, and reveals 13 deflation-ready investing strategiesincluding low-risk fixed income techniques designed to sustain equity-style total returns.
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