Irrational Exuberance

Emotions and heightened attention to the market create a desire to get into the game. This is a serious and well-researched book that should read like a Stephen King novel to anyone who has staked his or her future on the market's continued success. He fears that too many individuals and institutions have come to view stocks as their only investment vehicle, and that investors should consider looking beyond stocks as a way to diversify and hedge against the inevitable downturn. In Irrational Exuberance, Yale economics professor Robert J. He writes: "Perceived long-term risk is down. --Harry C. Such is irrational exuberance today in the United States." By history's yardstick, Shiller believes this market is grossly overvalued, and the factors that have conspired to create and amplify this event--the baby-boom effect, the public i

Now more relevant than ever, this analysis is both chilling and convincing—a must-read for the individual investor, the policy maker, and the investment professional.. Shiller, a leading expert on market volatility, evokes Alan Greenspan’s infamous 1996 reference, “irrational exuberance,” to explain the alternately soaring and declining stock market. Shiller’s unconventional yet persuasive argument credits an unprecedented confluence of events with driving stocks to uncharted heights, and he analyzes the structural, cultural, and psychological factors behind these levels of growth not reflected in any other sector of the economy. With a new Afterword on the current state of the stock market, the ongoing debate over the “new economy,” and the larger implications of “irrational exuberance.”In this controversial, hard-hitting account of today’s explosive market, Robert J

Irrationality Redux? Great Faulkner's Ghost This first edition of this book, in 2000, was a broad study, drawing on a wide range of published research and historical evidence, of the enormous stock market boom that started around 1982 and picked up incredible speed after 1995. The book argued that the boom represented a speculative bubble, not grounded in sensible economic fundamentals. The second edition, in 2005, added an analysis of the real estate bubble as similar to the stock market bubble that preceded it, and warned that "Significant further rises in these markets could lead, eventually, to even more significant declines." Alas, both predictions turne. Yoda said Excellent at Providing Historical Perspective, Analyzing Psychological Factors Causing Bubbles but Weak at Providing Solutions. This reviewer remembers having read the first edition of this book back when it first came out in either 1999 or "Excellent at Providing Historical Perspective, Analyzing Psychological Factors Causing Bubbles but Weak at Providing Solutions" according to Yoda. This reviewer remembers having read the first edition of this book back when it first came out in either 1999 or 2000, just before the stock market crash of 2000-2001. It did a very good job at providing historical perspective regarding long-term values in the stock market. It, correctly, pointed out that the stock market was overpriced and that a decline would be reasonable to expect. And so it happened.Since then, bubbles have also burst in the housing market worldwide as well as the stock markets. In addition, commodity markets have taken on many of the speculative characteristics of equity and housing markets, c. 000, just before the stock market crash of "Excellent at Providing Historical Perspective, Analyzing Psychological Factors Causing Bubbles but Weak at Providing Solutions" according to Yoda. This reviewer remembers having read the first edition of this book back when it first came out in either 1999 or 2000, just before the stock market crash of 2000-2001. It did a very good job at providing historical perspective regarding long-term values in the stock market. It, correctly, pointed out that the stock market was overpriced and that a decline would be reasonable to expect. And so it happened.Since then, bubbles have also burst in the housing market worldwide as well as the stock markets. In addition, commodity markets have taken on many of the speculative characteristics of equity and housing markets, c. 000-"Excellent at Providing Historical Perspective, Analyzing Psychological Factors Causing Bubbles but Weak at Providing Solutions" according to Yoda. This reviewer remembers having read the first edition of this book back when it first came out in either 1999 or 2000, just before the stock market crash of 2000-2001. It did a very good job at providing historical perspective regarding long-term values in the stock market. It, correctly, pointed out that the stock market was overpriced and that a decline would be reasonable to expect. And so it happened.Since then, bubbles have also burst in the housing market worldwide as well as the stock markets. In addition, commodity markets have taken on many of the speculative characteristics of equity and housing markets, c. 001. It did a very good job at providing historical perspective regarding long-term values in the stock market. It, correctly, pointed out that the stock market was overpriced and that a decline would be reasonable to expect. And so it happened.Since then, bubbles have also burst in the housing market worldwide as well as the stock markets. In addition, commodity markets have taken on many of the speculative characteristics of equity and housing markets, c. "No Easy Answers" according to Nick Zealand. The first edition of Irrational Exuberance warned of a stock market bubble. The key takeaway was to diversify. A few months later the dot com bubble crashed and stocks corrected.The second edition of Irrational Exuberance warned of a housing market bubble. The key takeaway was to diversify. A few years later, the sub-prime crisis hit and both stocks and house prices corrected.This, the third edition, warns about a number of things. And there seems to be no place to hide. Interest rates on bonds are historically low and unattractive. US stock prices are high. Yet historically speaking, Shiller thinks stocks could con