President Donald Trump is the main reason for the recent strength in the stock market, more so than the impartial evaluations of how the economy is performing, Nobel-prize winning economist Robert Shiller said during an appearance on CNBC’s “Trading Nation” on Sunday.
Shiller credited Trump for an emotional high that is currently felt throughout the market and which shows no signs of slowing down, explaining that “He’s a motivational speaker. We’ve never had a motivational speaker president before. He knows how to create animal spirits.”
Shiller, who predicted both the 2000 stock market plunge and the 2006 housing bubble, said that psychology plays a large factor in influencing market forces.
“It may not be so logical,” he said. “It may be more, as I said, of animal spirits. This is an emotion that you feel at a certain time that you sense you see in other people. So when you see other people feeling confident about the market, you feel more confident yourself.”
As he looks ahead toward 2020 and an election year, Shiller said a recession is probably years away and there is a very good chance that Trump will win a second term.
Shiller, who is not serving as a presidential campaign advisor, said that “We might see a continuation of the Trump boom for a while despite the impeachment.”
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
© 2024 Newsmax. All rights reserved.