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Robert Shiller: Europe Is Cheaper, Thinking About Getting Out Of U.S. Equities

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Noted economist and Nobel laureate Robert Shiller was on CNBC to discuss the long-term interest rates and the outlook for U.S. and European equities.

“The thing that is really striking, maybe not today, is the low level of long-term interest rates. It is just stunning how low they have gone.” Shiller said. “Recently, the 30-year real rate was a half a percent -- that’s incredible for 30 years and that was pushing the stock market up, but it’s not the kind of euphoria that we saw notably in 2000.”

How Much Percentage Of Your Money Is In Equities?

“It’s about half," he said “I am thinking of getting out of the United States somewhat…I think, Europe is so much cheaper.”

What Are You Investing In Europe?

“What I have done is I have invested in Italy index, Spain index.”

Shiller also said he is not hedging any currencies.

Do Lower Interest Rates Drives One To Take Additional Risks With Their Investments?

“Yes, in reaching for yield," Shiller said. “Right now it seems like there aught to be something that I can do that will make a lot of money, well there is for some people maybe, but for most of us, you look at the major asset classes, they tend to be pricy. So, what do you do?”

“In my new book, ‘Irrational Exuberance’, it’s the third edition of it, I conclude the book with saying you have to save more unless you have some special idea, realistically you are just not going to get the same returns and I don’t think people have reached that state of mind yet.”

 

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Posted-In: CNBC Robert ShillerMarkets Media