A Nobel laureate in economics is predicting a massive increase in the U.S. stock market.
Yale Professor Robert Shiller said last week that his latest research shows the market could rise as much as 50 percent within the next few years, The New York Post reports. Essentially, the Yale economist is predicting the Dow Jones industrial average as 30,000 in the near short-term.
“I would say, have some stocks in your portfolio. It could go up 50 percent from here. That’s what it did around 2000 — after it reached this level, it went up another 50 percent,” Shiller said.
His predictions rely on a successful push from President Donald Trump’s administration to pass tax and regulatory reform.[give_form id=”79809″]
“If factors go right and there are tax cuts for corporations, it’s not that hard to understand,” Shiller said.
Shiller is famous for correctly predicting the housing collapse of 2007, an event that put millions of Americans in hot water financially and caused a massive market correction.
The economist is also famous for something that is well-known in the investment community but largely unknown by the average individual. Shiller co-developed a stock price measurement index called the cyclically adjusted price-to-earnings ratio (CAPE).
The rate evaluates stock prices, taking a given stocks fluctuations over the past decade, and measures them in relation to long-term earnings and inflation. Shiller says that currently, according to his calculations, the ratio sits at 29. CAPE’s average value is around 17.
The market has been on a tear since Trump defeated former Secretary of State Hillary Clinton in November 2016. The Dow has notched new intra-day trading highs and record closings on a near weekly basis. The S&P 500 and the NASDAQ have also followed suit, breaking records multiple times since Trump took the White House.[contentcards url=”http://dailycaller.com/2017/06/04/nobel-prize-winning-economist-predicting-dow-30k/” target=”_blank”]
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