In a special edition of the Big Picture, Jim combines commentary and analysis with clips from his interview this week with Dr. Gary Shilling. Jim discusses the recent Federal Reserve meeting and its ratcheting down of growth forecasts and interest rate hikes. Jim sees only one rate hike this year. Shilling believes the Fed is more likely to cut rates than raise them. He believes we are eight years into the deleveraging process and have another six to eight years to go. Jim discusses this “new normal” era, with very slow growth, historic low-interest rates, and difficult times for savers and investors. Jim looks at the investment implications for the balance of this deleveraging period, as well as the chances of a recession in 2017.
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