Tags: Shiller | stocks | more | expensive

Yale's Robert Shiller: Stocks 'Looking More Expensive'

By    |   Tuesday, 24 June 2014 03:33 PM

Stock valuations continue to rise beyond historical averages, but the question is open as to whether the move will persist, says Nobel laureate economist Robert Shiller of Yale University.

He has been saying for months that the stock market is expensive. And now, "it's looking more expensive," Shiller told CNBC.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

He has a cyclically-adjusted price-earnings ratio that includes 10 years of earnings and stood at 26.3 Tuesday.

"Historically, it hasn't been that high very many times in history," Shiller said. "I can list them: 1929, 2000, 2007, that's just about it. We are historically pretty high."

"You never know when the boom is going to end," he said. "It's been at 26 before. That's roughly where it was in 1996, when I said I thought the market was high. It went up another 50 percent [or so] until 2000."

Forecasting the market is a difficult task, Shiller noted. "It might continue this boom. On the other hand, it is looking a little high. More than a little high."

The S&P 500 stood within 1 percent of its record high Tuesday afternoon.

Some investors are on edge now. "With the stock market near all-time highs and yet with GDP and earnings growth a little on the sluggish side, that has people a little nervous,” Matt Maley, equity strategist at Miller Tabak, told Bloomberg News.

"There’s a lot of complacency, and people are not worried about major downside because the Fed has their back. But they are nervous about a short-term pullback."

Editor's Note: Stocks to Drop 90%? These 5 Charts Reveal Why . . .

© 2021 Newsmax Finance. All rights reserved.


StreetTalk
Stock valuations continue to rise beyond historical averages, but the question is open as to whether the move will persist, says Nobel laureate economist Robert Shiller of Yale University.
Shiller, stocks, more, expensive
276
2014-33-24
Tuesday, 24 June 2014 03:33 PM
Newsmax Media, Inc.
 
Newsmax TV Live
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved