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.

Robert Shiller
GETTY IMAGES Robert Shiller

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