Tech talk has more predictions for 2009, and the news continues to be grim. Economist Gary Shilling, president of A. Gary Shilling & Co., was on the show this morning with a laundry list of dark projections for the economy and the stock market. Specifically, Shilling says the recession will last throughout 2009 and he expects the S&P 500 to hit 600 in 2009.
Shilling also tells Tech Ticker that a recovery isn't likely until 2010, but he is bullish on the dollar and cautiously optimistic about high-grade corporate debt, but doesn't see much to be hopeful about from the long side in 2009. He says “we have a lot of downside to go and that the recession won’t end at nine o’clock in the morning on June 30, like most people are saying.”
He also sees “no sign of bottoming out in the housing market, and that if you want to sell your home, do it yesterday.” He says stay out of stocks and to buy high-grade bonds. Shilling adds that it’s too early to buy the tech sector – that should wait until 2010.
A pretty sober assessment, especially about tech stocks. After all, how much lower can they go?
One potential bright spot for consumers; Best Buy is jumping into the iPhone market, selling refurbished Apple iPhone 3G models at a $50 discount. According to a Reuters dispatch this morning, the lower prices of $149 for the 8GB iPhone (normally $199) and $249 for the 16GB iPhone (normally $299)--with a two-year service contract with AT&T contract--apply to devices that were returned to the store within 30 days of their initial purchase.
The move undercuts the prices that Wal-Mart began selling the iPhones for on January 1. Wal-Mart has been selling the 8GB device for $197 and the 16GB device for $297. Expect those prices to come down, Wal-Mart being Wal-Mart.
A note from yesterday’s blog on Twitter. Aside from CNN anchor Rick Sanchez’s hacking, which featured a message from Sanchez that he was high on crack and wouldn’t be making it to work today, other big time personalities have suffered at the hands of Twitter hackers. That list includes, Brittany Spears, Fox News personality Bill O’Reilly, and President-elect Barack Obama (not necessarily in that order).