Famed economists Robert Shiller and Jeremy Siegel have been friends for almost 50 years, ever since they were both students at MIT. But when it comes to the markets, some might consider them foes.
They faced off in a speed round on Yahoo Finance.
Are we in a bubble?
Shiller: Halfway there.
Siegel: No.
Will there be a recession under Trump?
Shiller: “Yes.”
Siegel: “I don’t think so. It’s very close but I would say no. Also I’m assuming it’s only four years rather than eight.”
Shiller: “I was assuming four years. That makes it even stronger.”
Are FANG stocks overvalued?
Shiller: “Yes.”
Siegel: “Not all.”
At the end of 2017, will stock prices be higher or lower?
Shiller: “Higher.”
Siegel: “Higher.”
What is the biggest risk to financial markets right now?
Shiller: “International conflict.”
Siegel: “Conflict and a whole collapse of tax reform agenda.”
Home price ten years from now, higher or lower?
Shiller: “About the same or a little lower… in real terms.”
Siegel: “Higher in real terms also.”
Better school, Yale or UPenn?
Shiller: “I would say both!”
For more from Shiller and Siegel, please see below:
Robert Shiller and Jeremy Siegel tell us what they think of each other’s market forecasts
Robert Shiller and Jeremy Siegel share what they think of unusually low volatility
Jeremy Siegel: ‘On the whole, we have nothing replicating 1999’
Siegel: If Trump doesn’t bring reform we could have trouble in the markets
Jeremy Siegel and Robert Shiller tell us what’s next for the economy
Nicole Sinclair is markets correspondent at Yahoo Finance
