GuruFocus Premium Membership

Serving Intelligent Investors Since 2004

Try It 100% FREE for 7 Days!

Free 7-day Trial
All Articles and Columns »

Robert Shiller Discusses Market Outlook and Housing

January 25, 2013 | About:
Dheeraj Grover

Dheeraj Grover

Well-known Yale professor and co-creator of the Case-Shiller Housing price index was on CNBC to discuss his outlook for housing, U.S. stock market and current earnings season. He also shares his views on China growth.

-- On housing: Six months of data is not enough to confirm the trend. Housing may or may not grow in leaps in bounds.

-- He thinks current housing trend may have some seasonal bump as well.

-- Needs more data points to confirm if housing is on the mend, so don't get excited about it yet.

-- Even if housing has come back do not expect more than a 1% to 2% increase in house prices which is not exciting at all.

-- On U.S. stocks market outlook and earnings: P/E appears to be low but it is not if you compare today's price to average earnings for last 10 years.

-- Earnings are mean reverting and people don't understand that. That is why he has his own Shiler P/E index.

-- Earnings with current pace and latest numbers are not sustainable and historical trends suggest they will come down to revert to their mean.

-- Based on his own P/E, he thinks the market is overvalued.

Credit and source:, CNBC

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.0/5 (2 votes)


Please leave your comment:

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial