Yale economist Robert Shiller says the tsunami and earthquake that have devastated Japan may have a delayed impact on the stock market, with a big dip coming as we move out several days from the actual event. Shiller tells CNBC that after the Kobe earthquake 16 years ago, the Nikkei took a big dip a week or so after the quake, which he says could happen again. The reason, Shiller says, isn’t fundamentals; it’s emotions. After being deluged by several days of negative news stories, investor confidence gets battered.
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