Legendary investors sounded the alarm: the S&P 500 is expected to return to the downturn The recession will continue into next year

Sina Financial News The legendary investor who accurately predicted the 2008 financial crisis, the economic consulting company A. Gary Shilling, president of Gary Shilling & Co, recently warned that investors in the U.S. stock market will face a long period of disappointment, and a recession may hit this year and extend into 2025. In his latest outlook, Shilling expects the stock market to be dragged down by slowing real economic growth, mainly by modest growth in labor and productivity, as well as an aging population that leads to more savings and less spending. He also said that the slowdown in inflation will drag down the nominal gains in stock prices. In addition, Shilling highlighted that equities are overvalued relative to corporate profits, with the S&P 500 trading at 24.8x earnings over the past 12 months, well above the long-term average of 17.3.