American economist Robert Shiller may be a winner of the 2013 Nobel Prize in economic sciences for his research into market prices and asset bubbles, but when The Daily Ticker caught up with him, he wasn’t particularly concerned about current market prices or asset bubbles.
So what keeps the Yale professor and S&P/Case-Shiller Home Price Index co-founder up at night?
“The world economy is softening a bit,” he tells us in the accompanying interview. “There’s always a chance of another recession. It’s been six years since the last recession started – they tend to come along with some regularity. Congress is now unable to get things done, and so we won’t have a good response if there’s another recession.”
Daily Ticker guest Jim Rickards told us earlier this month he expects a recession next year because the recovery is already four-years-old and from a business cycle perspective, we are almost at the end of a normal cyclical recovery. He also factored in economic drags like the sequester, government shutdown and the low labor force participation.
Check out the video to find out Shiller's favorite indicator to watch in order to know when a recession is coming.
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