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Shiller warns again about U.S. stock bubble

- Adam Shell @adamshell USA TODAY

For the second time in two weeks, Robert Shiller, Yale economics professor and author of

Irrational Exuberance, sent out a warning to Wall Street. His message: the U.S. stock market looks “a bit like a bubble again.”

His latest comments, published in the Financial Times on Monday, mirror his comments Sept. 3 to business cable channel CNBC, when he said “this is a dangerous time” for the stock market and warned that the Dow Jones industrial average, which closed Monday at 16,370.96, could fall to 11,000 — a 33% drop from current levels.

Shiller’s latest warning in the FT suggests stocks are vulnerable — and could be in a bubble.

Shiller, who has a reputation for calling market tops, downplayed any big market reaction if the Federal Reserve raises interest rates this week.

“I’m not looking for any big effect,” he told the FT.

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Robert Shiller
GETTY IMAGES Robert Shiller

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