Tags: robert shiller | donald trump | stocks | magic

Yale's Shiller: Trump's 'Magic' Drives Stocks to Record Highs

By    |   Friday, 09 Dec 2016 12:00 PM

Nobel laureate economist Robert Shiller of Yale University predicts that the "magic" of President-elect Donald Trump can continue to lift stocks to record-high levels.

"We believe that psychology drives the macro economy, and there's something changing our psychology," he told CNBC.

"We have a business-oriented president who wants to cut corporate taxes, who wants to cut regulations, and who sympathizes with business," Shiller said. "Maybe it's not a good thing — it's a good thing for business, though," he said.

"Once people start to believe that it's a new era, it could go on for a while, even if it's unfounded," since "it's about human psychology, and it's what they call self-fulfilling prophecy," he said.

"Trump does magic," Shiller said. "Maybe it will be black magic sometime, but he's an amazing phenomenon," he said.

"He's the fundamental right now," Shiller said. "It's all Trump. He's in charge, and it's really making a change."

"He'd better live up to the expectation," he added.

Other respected economic voices have also cautioned about the stock market.

A “minor correction” looms for the record-setting stock market, but Donald Trump will help the “ordinary investor” if the new president stops "flailing" and starts delivering on his campaign vows to make America great again, Peter Morici, a syndicated columnist and economist at the University of Maryland, tells Newsmax TV.

“I can't imagine it's going to keep going up like this and then not have a little minor correction at least,” Morici said of the lofty market's bull run since Trump's election victory. "Or even a large one. Not permanent," he said.

“There's a lot of optimism about the election of Donald Trump because after all, Barack Obama has been the most anti-business president we have had. I mean he has a visceral dislike for guys in Cadillacs, or worse, guys in Lexuses,” Morici told Bill Tucker on "The Steve Malzberg Show."

“Getting rid of him (Obama) is good for stocks, but now Donald's got to deliver and we do see him flailing about a bit,” said Morici, who is also a Newsmax Finance Insider. 

(Newsmax wire services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

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Robert Shiller thinks the post-election rally could continue on in the short term, as enthusiasm over the election of Donald Trump spurs stocks higher.
robert shiller, donald trump, stocks, magic
Friday, 09 Dec 2016 12:00 PM
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