Robert Shiller

Mauldin has Shiller on his side...

Stock markets are still expensive and investors could be in for an unpleasant surprise once corporate profits begin to weaken, says the Yale University economist who predicted the crash of 2000-2002.

Robert Shiller, whose 2000 book Irrational Exuberance became a bestseller for its gloomy but accurate forecast, said the current equity market rally is reminiscent of the mid-1930s rebound that followed the Great Crash of ‘29. The Dow Jones industrial average tripled over four years between 1933 and 1936 — only to plunge once again in the run-up to the Second World War.

-- from Trevor at chucks_angels