Prepare for stocks to plummet 30% - and a recession to strike any day now, legendary market prophet says

• Stocks could plummet by as much as 30%, a legendary Wall Street forecaster says.
• Gary Shilling expects a recession to hit imminently, if one isn't underway already.
• Shilling says he's betting on Treasury bonds and the US dollar, and against stocks and commodities.

Prepare for stocks to plunge by a third and a recession to strike imminently, a legendary market forecaster has warned.

"I've been of the opinion that stocks — and I came out with this forecast early last year — would decline about 30% to 40% peak to trough," Gary Shilling, the president of A. Gary Shilling & Co., told "The Julia La Roche Show" in an interview aired this week.

"You'd have a further decline of about 30% from here to get that 40% overall decline, peak to trough," he said.