This interview with Shiller from last October is pretty good. At first glance Shiller didn’t seem to say all that much. The old usual two-handed economist gig.
But resd more closely Shiller is saying something important. The narratives have changed, and the animal spirits reignited. These 3 weeks is a powerful showcase and it’s not just the US.
There are now 2 powerful narratives for the US and an additional one for Hong Kong/China:
Trump is pro business and will cut corporate taxes and regulations. Soon there will even be an infrastructure stimulus.
AI is taking over the world and take away your job. The least average people can do is buy tech stocks.
And the additional one for Hong Kong and China:
- Xi will push through difficult deleveraging reforms and China will rise to challenge America.
These 3 narratives combined are pushing world wide stock markets to unprecedented highs. I suspect the party will last longer than people thought possible.