U.S. stocks ended 2013 at record highs, with the S&P 500 posting its largest annual jump in 16 years and the Dow its biggest gain in 18 years. While across the Atlantic, the pan-European benchmark STOXX 600 clocked gains of 17 percent, after a year in which faith in a euro zone recovery returned to the markets.
Goldman Sachs analysis this month said that a stock market correction is approaching the level of near certainty, citing a major paradigm shift for Wall Street. The firm's strategists called the S&P 500 valuation "lofty by almost any measure" and attached a 67 percent probability to the chance that the market would fall by 10 percent or more.
(Read More: Housing market could be facing another bubble: Shiller)
In December, Shiller, who co-founded the Case-Shiller index of home prices, shared an equally bearish view on the U.S. housing market. He told CNBC that the market could be in the early stages of yet another bubble.
"In the housing market, it has its own momentum right now as people see it coming back. We're sort of in the beginnings of another housing bubble," he said.
Shiller won the Nobel prize for economics in October for his research that has improved the forecasting of asset prices in the long term. He was awarded the 8 million crown ($1.25 million) prize alongside fellow economists Eugene Fama and Lars Peter Hansen.
By CNBC.com's Matt Clinch. Follow him on Twitter @mattclinch81