The U.S. stock market is undergoing the most volatile week in history. The turmoil is scaring everyday Americans already wrestling with concerns about jobs and the economy, according to Yale University Economics Professor Robert Shiller.
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“I think that people are generally anxious about their future," he said. "On top of that we had this turmoil in the market over the last 10 days or so, and that turmoil has a different sort of edge to it. It isn’t over yet.”
Shiller, who won the Nobel Prize in Economics for his work identifying asset bubbles, also developed the widely followed S&P/Case-Shiller Index, which tracks home prices across the U.S. Tuesday’s report for June showed prices in 20 major U.S. cities rose 1%. The annual gains saw a 5% increase, slightly below expectations.
“The housing market has gone up quite a bit since the bottom in 2012,” Shiller said. “It’s been a rapid ascent so it looks kind of bubbly there.”
Housing is just one of many assets Shiller is concerned about.
“There seems to be a tendency around much of the world for high priced assets--it’s like a general phenomenon,” Shiller said. “At the same time, when we talk about secular stagnation… maybe they’re related. There’s something about the psychology right now.”