Robert Shiller, not always our favorite economist here, is warning that the stock market is looking particularly bubbly. This isn’t a huge story except that talk of a bubble is now coming from one of the accepted shamans of Keynesianism. Shiller also called the tech bubble and housing bubbles accurately. His book Irrational Exuberance is a classic.
Fears of a bear market for U.S stock markets came back to the fore Monday with Nobel Prize-winning economist Robert Shiller warning of rock-bottom investor sentiment in his latest research.
The Yale University economist told the Financial Times over the weekend that his confidence surveys were signalling investors were currently at their most fearful of an overvalued market than they have been since the dotcom bubble in 2000.