Is the stock market in a bubble? If not, it's awfully close to one, Robert Shiller argues.
"We have been in an up market since 2009, and it's been quite dramatic," he said on Tuesday's "Futures Now." And as the market rose, "it brought more and more people to regret that they didn't get in in 2009," he added. "So yes, it does have aspects of a bubble."
But what is a bubble, exactly? In the second edition of his book "Irrational Exuberance," the economist defines "speculative bubble" as "a situation in which news of price increases spurs investor enthusiasm, which spreads by psychological contagion from person to person, in the process amplifying stories that might justify the price increase."
A professor of finance at Yale, Shiller believes that this could accurately describe the current state of things. With its precipitous rise, the market has "certainly generated stories that are optimistic," he said.