Stocks Are Still 'Risky Investment' This Year: Prof. Shiller

Short-term speculative pressures may drive up the stock market, but overall, it's still a "risky investment," said Robert Shiller, professor of economics at Yale School of Management and founder of the Case-Shiller Home Price Index.

The stock market "is highly priced and in the long run, I don’t think it’s particularly poised to do well,” Shiller told CNBC.

Based on the tremendous amount of volatility in the economy and corporate earnings, Shiller warned that "we may not have such good [earnings] surprises" this year.

Counterpoint: 'Very Cheap Market'

In the meantime, Jeremy Siegel, professor at Wharton School at the University of Pennsylvania, offered a rosier perspective and said he expects 2011 to be another good year for stocks.

“It’s been a stealth bull market—few people realize that the S&P [index] is only down about 15 percent from its all-time highs. And even more encouraging is the fact that earnings estimates from S&P are expected to be $94 a share in 2011,” he explained.

“And with low interest rates, this is a very cheap market.”

Scorecard—What They Said:

  • Shiller's Previous Appearance on CNBC (Dec. 31, 2010)
  • Siegel's Previous Appearance on CNBC (Dec. 14, 2010)

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No immediate information was available for Shiller or Siegel.