Robert Shiller: Stocks Look ‘Pretty Frothy,’ Home Prices ‘Getting High By Historical Standards’

Last investment-related piece for the day. Yahoo! Finance Editor-In-Chief Andy Serwer recently interviewed Yale economist Robert Shiller in a “Market Pulse” segment. Serwer brought up the stock market and housing in his chat with the Nobel Prize winner, who correctly-called the dot-com and housing busts of the last decade. These days, Dr. Shiller once again has concerns about both. From their discussion published September 25 on the Yahoo! Finance website:

SHILLER: I think there’s a little bit of over-exuberance in the stock market at the present time.
SERWER: Right. Even with this recent correction?
SHILLER: The correction that we had in August brought the market down 10 percent. But it’s halfway back up again. So it’s still looking pretty frothy

(Editor’s note: Bold added for emphasis)

Dr. Shiller added later:

The market is highly-priced by traditional- well, this isn’t a traditional measure this is a measure that I and my colleague John Campbell developed. On top of that, I have survey data showing that people think the market is overpriced. The percent who think that is quite high now. So, I think this creates a little bit of fear that there could be a correction. When we saw the correction in August of this year there was I think some anxiety thrown into people’s hearts when they also feel that the market almost tripled between 2009 and 2014- it’s really pretty high. And I think there could be a further correction. I certainly am not forecasting that because nobody really knows what the stock market will do. But I think we’re in some danger of that. My instinct would be not to take any extreme moves, not to pull out completely. But also not to be heavily exposed to the market. I think it’s worrisome at this point. Worrisome but not horrible. I think you keep something in the market. But not too much.

(Editor’s note: Bold added for emphasis)

On housing, there was this exchange:

SERWER: We’re seeing the housing market heating up again. Do you think that this is a sustainable recovery?
SHILLER: Well, home prices have been going up. But they’re still not in real terms close to the previous peak in most cities… Is this sustainable? I’m starting to worry a little bit. It’s getting high by historical standards. And it’s another cause for concern. But it’s not like the stock market yet in terms of valuation.

(Editor’s note: Bold added for emphasis)


“Shiller: Stocks and housing are overvalued—here’s what to do about it”
Yahoo! Finance Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Share

Tags: , , , ,

Tuesday, September 29th, 2015 Crash Prophets, Housing, Investing, Stocks
Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

This Project Dedicated to St. Jude
Patron Saint of Desperate Situations



Please Rate this Blog HERE



happyToSurvive
Advertising Disclosure here. "Code Needed"=Promo Code Found On Advertiser Website. Ad Captions Last Updated 1/15/17.
ANY CHARACTER HERE
Buy Gold And Silver Coins Huge Silver Bar Sale (10 Oz. Individual & Monster Boxes)! World Gold (Bullion) Coins/Bars Also On Sale. Free Shipping On U.S. Orders $99 And Up (Only $5.95 Below $99!). BGASC Reviewed HERE.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service Taking Care Of $2 Billion For Over 65,000 Users From 175 Countries. BullionVault.com Reviewed HERE.
ANY CHARACTER HERE
1-Year Food Supply $1,597 + Free Shipping Limited Time Only; Alexapure Pro Water Filtration System $147; Big Savings On "Deal Of The Day" Page; Free Shipping On Orders Over $79. MyPatriotSupply.com Reviewed HERE.
ANY CHARACTER HERE
bullet proof vestsWorld's First Bulletproof Baseball Cap Only $129; Bulletproof Ceramic Plate (NIJ Level III Stand-Alone) Only $169; Bulletproof Backpack/Messenger Bag Panel Only $99. BulletSafe Reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% Discontinued Title Sale- Savings Up To 75% Off Original Price. Paladin Press Reviewed HERE.
 

Categories

Archives

Prepper Website

RSS Chris Hill’s Other Blog: Offshore Safe Deposit Boxes

  • Related Reading: Another Take On ‘Old’ Gold Coins Being Better Than Bullion Against Confiscation
    Earlier this week I discussed two recent blog posts by economist Martin Armstrong concerning what he thinks is the most effective way to possess and retain physical gold in the face of government confiscation. My understanding was “genuine old coins,” as: Coins are better than bullion for they have some historical value. Their historical value […]
  • Happy Inauguration Day
    Just wanted to wish American readers of Offshore Safe Deposit Boxes a happy- and safe- Inauguration Day. Christopher E. Hill Editor Betty White, It’s a Good Day (1954) YouTube Video
  • Related Reading: Jewelry Investing Article In Town & Country Magazine
    This afternoon I was surfing the Internet when I came across an article about jewelry investing on the website of Town & Country, the venerable monthly American lifestyle magazine. In “Is Jewelry the Last Brilliant Investment?” (published January 17), Stellene Volandes discussed “the role of stones and jewels as a new asset class” and the […]
  • Martin Armstrong: Old Gold Coins Better Than Bullion Against Confiscation
    In two January blog posts on his company’s website, economist Martin Armstrong shared what he thinks is the most effective way to possess and retain physical gold in the face of government confiscation. On January 10, Armstrong advised his blog readers: As we move forward, it will be best to hold assets out of banks […]
  • New Year’s Half-Price Domain Sale
    A little housekeeping to start off the blogging week on Offshore Safe Deposit Boxes. I’d like to direct your attention to the following on the blog’s sidebar: Opening An Offshore Private Vault? New Year’s HALF-PRICE Domain Sale Limited Time Only! elitevaults.com $100 offshoreprivatevault.com $500 offshoresafedepositbox.com $500 Inquire Via “Contact” Page Have a great week, Christopher […]