The S&P 500 just broke a five-day losing streak today, but the index is still down from its highs.
Market bear Gary Shilling was on Bloomberg TV today saying that with a hard landing in China and a strong dollar, he expects the operating earnings of S&P 500 companies to drop to $80 this year.
He said this would almost guarantee a major bear market with a PE ratio low of about 10, which implies that the S&P 500 index should be around 800—a 43 percent decline from its recent level.
"Bear in mind that the analysts have been cranking their numbers down. They started it off at north of a 110, then 105, they're now 102. They're moving in my direction. Read More