USA TODAY US Edition
Shiller warns again about U.S. stock bubble
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.