“Is the stock market about to take a 10-year nap? That’s the warning coming from fund managers and stock market historians, including Yale University professor and housing guru Robert Shiller.
Shiller sees stocks gaining between 2 percent and 3 percent during the coming decade. He sees no reason to believe in a resurgence of consumer spending, considering that the real unemployment rate, by his calculation, is 15.9 percent, and housing is headed south again.
“Even at this point, with the recession technically over, we are in the worst financial shape we’ve been in since the Great Depression,” he told an audience in Las Vegas, reported InvestmentNews.com.
Shiller’s unemployment figure counts unemployed, underemployed, and people forced into early retirement by the economy.
On top of all that, consumer confidence is weak and the foreclosure crisis continues to spread, Shiller notes.
“It worries me because if people don’t have confidence, they don’t spend money,” said the professor, who is best known for the widely cited S&P/Case-Shiller Home Price indexes.”
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