I may get out of US stocks: Nobel-winner Shiller
Nobel Prize-winning economist Robert Shiller told CNBC on Wednesday he's thinking about shifting his personal money away from U.S. stocks.
The Yale University professor said on "Squawk Box" he has about half his portfolio in stocks. "I'm thinking about getting out of the United States somewhat. Europe is so much cheaper."
Citing moves he's already made, Shiller said, "What I have done is I've invested in Italy indexes, Spain index."
The stunningly low long-term interest rates are pushing U.S. stocks higher, he said. "You look at the major asset classes, they tend to be pricey."
The solution, Shiller said, is to save more. That's the conclusion of his third edition of his book "Irrational Exuberance."
"Retirement will be difficult if you don't save more," he warned. "I don't think people have reached that state of mind yet."
On housing, the co-founder of the Case-Shiller Home Price Index said he's concerned that the run in recent years may not continue. "We've seen a big increase in home prices since 2012, and I won't bet on that continuing."
"Home prices are ... at about the right level based on history. So may be they won't go anywhere in the near future," he added.
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Frequently Asked Questions about this Article…
Robert Shiller is considering moving his investments away from U.S. stocks because he finds European markets, like Italy and Spain, to be cheaper. He also notes that the low long-term interest rates in the U.S. are pushing stock prices higher, making them appear pricey.
Robert Shiller has already invested in Italy and Spain indexes as part of his strategy to diversify away from U.S. stocks, which he finds to be expensive.
Robert Shiller suggests that saving more is a solution to dealing with pricey asset classes. He emphasizes the importance of saving for retirement, as outlined in his book 'Irrational Exuberance.'
Robert Shiller is concerned that the recent run in home prices may not continue. He believes that home prices are currently at about the right level based on historical data and may not see significant increases in the near future.
Robert Shiller stresses the importance of saving more for retirement, warning that it will be difficult if people do not adopt a mindset focused on saving.
According to Robert Shiller, low long-term interest rates are contributing to higher U.S. stock prices, making them appear more expensive compared to other markets.
The main conclusion of Robert Shiller's book 'Irrational Exuberance' is the importance of saving more, especially in the context of pricey asset classes and preparing for retirement.
European markets might be more attractive to investors like Robert Shiller because they are perceived as cheaper compared to the U.S. markets, offering potentially better investment opportunities.
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