Rabbi Steven Lebow's List: Stocks and Investing

• Mr. Shilling believes price drops of 2% to 3% yearly will persist long after  this recession because of huge efficiencies driven by globalization and  technology, plus retirement-panicked baby boomers curbing their spendthrift ways  and pumping up their puny savings. That would echo similar deflationary spells  during prosperous, high-growth times like the late 1800s and the 1920s.

  • DEFLATION

• Good ideas: Longer-term Treasurys and certificates of deposit, which will  continue to pay interest in the low single-digits. If the CPI is down 2% and  30-year Treasurys yield 3.6%, as they do now, then you get an effective  5.6%.

  • buy 30 year treasuries
• The housing bust is showing Americans that a place to live is no longer a  can't-lose investment, Mr. Shilling says. Hence, he forecasts a surge into  rental apartments, which should boost now-flagging apartment REITs. In health  care, Mr. Shilling thinks winners will be companies dedicated to cost  containment

  • Buy REIT for apts.

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