Socio-Economics History Blog

Socio-Economics History Blog

Nobel Laureate Signals Worried, Fearful U.S. Markets: “Financial Bubble Ready to Burst”

by mosesman

[youtube=https://www.youtube.com/watch?v=DkJskOv9N6E]

  • Nobel Laureate Signals Worried, Fearful U.S. Markets: “Financial Bubble Ready to Burst”
    by Mac Slavo, September 15th, 2015, SHTFplan.com  
    As if there haven’t been enough financial worries, now a Nobel economics laureate is now signalling the alarm. According to Yale University’s market scholar Robert Shiller, confidence levels are at an all time low for the 21st Century – with clear indications that investors see the market as overvalued, and vulnerable to collapse. The Financial Times reported:
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    A growing number of investors believe that US stocks are overvalued, creating the risk of a significant bear market, according to research by Yale University market scholar Robert Shiller.
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    … [H]is valuation confidence indices, based on investor surveys, showed greater fear that the market was overvalued than at any time since the peak of the dotcom bubble in 2000.
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    “It looks to me a bit like a bubble again with essentially a tripling of stock prices since 2009 in just six years and at the same time people losing confidence in the valuation of the market,” he said.
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    However […] it remained impossible to time any fall in the market…
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    But even news that a pop in the bubble and a subsequent collapse could occur, seems like a foregone conclusion for Shiller, who is hardly surprised:
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    “It’s been talked about for so long, everyone knows that it’s coming. It’s just not much of a big deal.”
    […]
    He said the recent bout of volatility “shows that people are thinking something, worried thoughts. It suggests to me that many people are re-evaluating their exposure to the stock market. I’m not being very helpful about market timing but I can easily see aftershocks coming”.
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    Not a big deal isn’t how most financial analysts and observers would put it, but nonetheless, the warning is there: the stock market bubble is set to burst, and a collapse is likely coming. Aftershocks to follow. Even ivy league financial authorities agree.
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    Shiller made extended remarks on the situation is this video interview with the Financial Times: (top of post)
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    read more.

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