Robert Shiller Discusses Bubbles and Narrative Economics

A CFA Institute article offers insights from Nobel laureate Robert Shiller on current market conditions and what lies ahead. Here are some highlights from Shiller’s comments: Both the stock market and housing boom “show signs of disruption right now, which is a little unusual as these two markets are not very correlated with each other on a historical basis. On whether we’re in a bubble, Shiller says the question seems vague but also indicated an… Read More

Building a Defense Against Fake Economics

The increased scrutiny that academics have faced since the financial crisis of 2008 has led to “the rise of slapdash or highly dubious economic views,” according to a recent Bloomberg article that says such theories should be tested more rigorously. The article cites the example of President Trump’s “trade war with China” which, it says, he initiated on the advice of White House Trade Council head Peter Navarro. Although Navarro has academic credentials and has… Read More

Common Ownership Among Investors Could Make Economy Less Competitive

Economists Jose Azar (University of Navarra IESE Business School) and Martin Schmalz (University of Michigan’s Ross Business School) have studied the idea that common ownership is “making companies and the economy less competitive.” This according to a recent article in Bloomberg. The article highlights the fact that, in recent decades, U.S. industries have become more concentrated, an evolution that leads to a more monopolistic environment which in turn results in “higher prices and lower productivity,… Read More