to the Janet Yellen-led Federal Reserve due to low interest rates. The Fed later hiked rates three times in 2017, two times after PJT's comments. Ultimately the central bank got the warning and reversed itself, cutting rates three times last year helping the economy to catch up.CAPE is near the highest since the 2000 dotcom bubble, when internet stocks rose and eventually collapsed, shedding nearly 80% of value within seven months.
"Such elevated valuations in past periods have weighed on equity returns over the subsequent five years and lowered the odds of positive outcomes," Goldman Sachs Investment Strategy Group CIO Sharmin Mossavar-Rahmani said in the group's 2020 outlook. "That the bulk of last year's returns came from higher valuations, and not growth in earnings, only compounds investors' concerns.
Stocks continue to climb to all-time record highs and seem to disregard geopolitical pressures. Shiller attributes "animal spirits," a sense of optimism and inclination toward risk to the gains. "High animal spirits in the stock market are often associated with the disparagement of traditional authority and expert opinion," Shiller wrote, which he said is being inspired by President Donald Trump's Make America Great Again narrative.
"The rise of an explicit belief in irrationality like this one is troubling on many levels," Shiller wrote in the NY Times.
NYforSanders No shit. But CNBC admitting this means the crash is imminent.
No shit...
The question is, can we believe that? America entered a state of war in the Middle East after the bombing of Ein Al-Assad base, and the stock market is rising, what this means.
Where the f*ck have you been? Have the banks closed their long positions and finally given you permission to report the news?
BradBird84 DOW32K confirmed by articles like this one
Really? 🤦🏼♂️
Translation: it sounds like a bubble 😩. I can't be rooting for anyone to lose on the economy. We may not recognize it now, but latter on when we look back at this time, we'll wonder why we didn't see it sooner.
GodcallsBS overvalued: maybe inaccessible: without a doubt
Its been overvalued for a long time. Just like the USD
the same headline has been used ad nauseam for the past 5 years.
Ya think? It’ll crash on Trump’s watch and a dem will deal with the fallout
1929 and counting...
Could?
Undervalued.. people still sitting on boat loads of cash ☺️
Keep 25% cash for the drop and then buy buy buy
No shit sherlock.
CNBC WILL DISTORT FACTS, DOESN'T DO MATH ANYMORE, HAVE YOU FIGURED OUT WHY? CAUSE THE MATH WOULD TELL YOU DONT BUY. AMERICA IS FAKE WHEN IT COMES TO MONEY
Could be!
The market is fake, the economy is a Facade! When the Fed is pumping TRILLIONS into banks, that's not healthy or normal! Yet CNBC tells you to keep buying? Cause when the buying stops, the game is OVER! I can't wait for reality to set in.
Yet odd that our national debt is also at an all-time high 🤔. Spend it like you got it! 😂
Trump is when they say the free market you know it’s bull🤷🏽♂️
lol MIGHT WANNA GET READY FOR THE CRASH
Im low on cash and even i know that. steviewonder can see this
Yes, it raises the possibility of sharp sudden adjustments.
Just railway yesterday that Trump has feds pumping money into it which is over inflating the market. When trump stops the bottom will fall out. This is his plan...
STOCKS SOAR ON THE NEWS!
Just keep investing every week/month/year and ignore the noise.
Listening to stupid advise and theories like this has cost people a TON of money 🤷🏽♂️ The economy is strong right now. There’s ZERO catalyst for a downturn
‘Could be’ 😂
Not really sure there is and “could” about it. This is bubble territory.
Will Feds allow bubble to burst or keep funding bubble w cheap credits?
WE have already seen companies start reporting decent numbers but the stock still goes down.
A boom always leads to a bust
The relationship is meaningless. The reason the market is so high is simply low real interest rates. If we had say 5% inflation and 6-7% bond yields the stock market would be dramatically lower, but the economy may be in a similar, slow growing place
Trump's strategy: falsely inflate the market banking on the fact that his magats don't get that it will crash
No shit. We go through this every 10 to 15 years or so. Goes up, goes down, goes up, goes down. I just wish you guys would acknowledge that you all said if Trump is elected it would crash immediately. Now that you were wrong you simply say 'Well, its high but that's bad'
it could !!
The show goes on as long as the Fed keeps socialism for rich people going.
Thanks federalreserve for helping JPM make 1B profits. I thought there was a repo crisis? Or your just printing money to slide into JPMs back pocket to trade? NotQE
Duh
It's definitely overvalued. The last 3 months have been overkill. Everyone wants in.
Shocker !
'could be'
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