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Analyst Watch: Investment Strategies for Slow Growth

U.S. stock index futures pointed to a barely higher open Wednesday, with investors looking for headlines from politicians and policymakers at the G20 meeting in Seoul.

Here's what analysts and others are watching before the bell:

Amid the many investors who fear a rapid rise in inflation, Gary Shilling, president of A. Gary Shilling and Co., argues that the global economy is going through a long period of deleveraging and weak growth that will make deflation a far more likely and greater threat to investors than inflation.

According to Shilling, who predicts chronic price declines of 2 to 3 percent annually, “Many investors don’t seem to realize that the good life and rapid growth that started in the early 1980s was fueled by massive financial leveraging and excessive debt, first in the global financial sector and later among U.S. consumers. But now those two sectors are being forced to deleverage and, in the process, are transferring their debts to governments and central banks."

Shilling explains that the United States and world economy will struggle for a number of years and what investors can do to protect and grow their wealth in the difficult times ahead.

Specifically, Shilling likes 30 year Treasurys.

"[Investors] ought to be preparing for the prospect of deflation, which affects things like consumer durables," Shilling says. "Consumers are on a saving spree so that kind of thing will be postponed anyway."

Shilling details the12 explicit investments to avoid or sell short and 10 to buy in his new book, “The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth & Deflation.”


See more of what analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.

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