You are here

US economy at risk of rationally irrational exuberance

Believing that fundamentals don't always pin down asset prices isn't the same as believing they're irrelevant.

On Jan 23, just a few days before equities crashed, Nobel laureate Robert Shiller reminded anyone who cared to listen that the US had the world's priciest stock market.


THE timing was exquisitely ironic: equity markets peaked - and a week later began crashing - just as pundits left this year's World Economic Forum meeting in Davos, where they concluded that the global economy was on a steady upswing. In the weeks since, experts have divided into...

Market voices on: