Investor sentiment today is looking like it did in 2000, and that could be a sign markets are in a bubble, Yale professor and Nobel economics laureate Robert Shiller told CNBC on Tuesday.
Just before the dotcom bubble burst, investors had very little confidence in stock valuations, but they were confident in the market in the short term, he said.
“That’s the sign of the bubble. They’re worried but they’re thinking they’ll get out,” he told CNBC’s “Squawk Box.” “This can suddenly turn, and we’re looking somewhat like that now. Here is a direct video link.
Here is the Shiller PE chart showing valuation cycles since 1880.
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