The US dollar and Treasury bonds outperform risky assets during “D” periods–disinflation and outright deflation.  While inflation trades have won year-to-date, a return to “D” conditions remains probable in the second half.  As usual, very few will be positioned proactively for it.

Gary Shilling, president of A. Gary Shilling & Co., offers his top investment themes – two long and two short strategies. Here is a direct video link.