“Stocks are very expensive and there probably is a major correction coming somewhere in the relatively near future,” Shilling said. “A decline of 20% or 30% is no big deal by historical standards. So I would say that’s probably in the cards.”<\/p>\n
MARKET EXPERT SAYS POTENTIAL FED RATE CUTS COULD SPARK \u2018ONE OF THE BIGGEST EXPLOSIONS\u2019 IN U.S. ECONOMY<\/a><\/p>\n “I’ve sort of made a career looking for those hidden flaws, and I don’t see anything right now that is just screaming for a big sell-off, but that doesn’t mean it isn’t there,” he added.<\/p>\n Traders work on the floor of the New York Stock Exchange during morning trading on May 1, 2026, in New York City. (Getty Images)<\/p>\n Across American real estate, buyers and sellers have been reluctant to make moves as interest rates remain elevated, and mortgage loan rates slowly tick down. There is also a lack of affordable inventory and reports of rising foreclosures<\/a>, signaling homeowners continue to get squeezed.<\/p>\n Shilling also pointed to what he described as a “collapse” in capital expenditures, or large investments that companies expect will last for years and boost overall future value. Business Insider cited that broader capital expenditures grew just 3.9% by the end of 2025, compared with a pandemic peak of 24% capex growth.<\/p>\n The economist spotlighted the state of the U.S. consumer as the third pillar leading to a recession, with the Federal Reserve’s preferred inflation gauge<\/a> remaining stubbornly high in March, rising 0.7% month-over-month and up 3.5% from a year ago.<\/p>\n Former White House Council of Economic Advisers Chair Tyler Goodspeed discusses the economic impact of the Iran conflict and whether the U.S. is facing a recession on ‘Mornings with Maria.’<\/p>\n When it comes to economic solutions, Shilling said a downturn could be prevented by fiscal stimulus or a strengthening consumer \u2014 “both of which he thinks are unlikely.”<\/p>\n “That’s really on very thin ice in terms of income, in terms of people’s willingness to spend,” Shilling said.<\/p>\n![\"Brokers](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/05\/nyse-floor-5-1-26.jpg\")
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