Tags: Robert Shiller | Investors | Diversify | Globally | Europe

Yale's Shiller: Diversify Globally for Protection in Volatile Times

(AP/Brendan Smialowski)

By    |   Friday, 28 April 2017 02:52 PM

Nobel Prize-winning economist Robert Shiller is warning savvy investors to go abroad despite U.S. stocks seemingly hitting record highs on a daily basis.

"Europe should be a big thing in one's portfolio. Their price-to-earnings ratios are much lower," Shiller recently told CNBC.  "We're living in very volatile times. We don't know what to expect," he said of the U.S. domestic and overall global investing outlook.

"It looks bad because they've been through troubles recently. But people sometimes exaggerate those troubles," the Yale economics professor said.

"We have a lot of bad narratives about Europe. But you have to think back at the long history. Europe has done quite well," he said, in reference to Brexit, the French election and a rise in terrorist attacks — as well the debt crisis affecting countries such as Greece, Spain and Ireland

"Most Americans are not well-diversified globally. When we're talking about the 'Trump effect,' that is primarily a U.S. effect. You can solve that problem by diversifying around the world," said Shiller.

However, other respected economic gurus are urging investors to keep the faith as Trump works to truly "Make America Great Again."

Professional investor and media analyst Jon Najarian recently told Newsmax TV that the stock bull market that has been raging since Donald Trump’s election has enough energy to surge as much as 10 percent more despite some looming “bumps” on the road to more record highs.

“The Trump bump can still run,” Najarian told “The Income Generation Show.”

“In the short term, there's going to be those bumps that could cause either (Fed Chair Janet) Yellen or the economy to pause and when we hit those, I don't think we see 10 percent corrections. But I do think that we can go up another 7-10 percent this year so again with an eight or nine-month timeframe,” he told host David J. Scranton.

“I'd say more upside than downside,” he predicted.

Najarian is far from alone in his optimism.

David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.

“There's more upside. Starting from when he was president-elect he started this stock market boom,” he told “The Income Generation Show.”

“There will be corrections. There are going to be setbacks along the way like the healthcare which they hurried too fast. If you're looking over the long term of this administration I think the stock market is going to love Trump.”

(Newsmax wire services contributed to this report). 

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Nobel Prize-winning economist Robert Shiller is warning savvy investors to go abroad despite U.S. stocks seemingly hitting record highs on a daily basis."Europe should be a big thing in one's portfolio. Their price-to-earnings ratios are much lower," Shiller recently told...
Robert Shiller, Investors, Diversify, Globally, Europe
438
2017-52-28
Friday, 28 April 2017 02:52 PM
Newsmax Media, Inc.
 

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