“Maybe,” answered Shiller to Daily Ticker’s Aaron Task earlier this week.
It’s not the greatest answer in the world. But it’s not a “No.”
Remember, Robert Shiller was the genius who predicted the dot.com bubble of the late 90’s in his book Irrational Exuberance. He also predicted the housing bubble. So, when Shiller talks about bubbles, people listen and markets move.
“There’s always a chance of another technology bubble,” Shiller added.
However, he wasn’t willing to commit to calling the current frenzy for tech stock a bubble for several reasons. Among them, Shiller thinks investors are being held back because the economy is only slowly coming back and unemployment levels remain high.
But, he added: “We’ve got an exciting thing going. All of the new gadgets are just so breathtaking. There’s going to be huge fortunes to be made. That kind of excitement I do feel in the air.”
“I wish I understood human psychology better than I do,” Shiller modestly said earlier.
Later in the interview, Shiller added “I would still put money in the stock market right now. But not overwhelmingly. This is the time to be reasonably diversified.”
Here’s the full interview courtesy of Yahoo’s Daily Ticker: