Dr. Robert Shiller in an interview with Bloomberg discusses the short and long term impact on the market if Donald Trump gets re-elected.
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He's right there. Some 500 billion dollars goods in the market. Are long term investment. President Trump even to gets reelected is a short term event. But nevertheless. Market confidence is starting to rollover from that record high as the S&P which is higher. The white line in the new. Survey to see how many responded a stock higher over the next month the blue line which is the S&P Standard questions need to understand investor psychology. Luckily we have it right with us now Robert Shiller Yale University professor of economics and 2013 of old and Dr. Robert Shiller is the cocreator Shiller index that U.S. house prices and author of The New York Times best selling book on investor psychology irrational exuberance you joined us now from Yale University. Your resume is going to take up the whole day. ROBERTS Yeah right. And when you look at the headline How Mester mean chirpily not need to be investing for the longer term.
It's really tough call at this point. We have what looks like a major regime change. They just cut the corporate profit tax rate from 35 percent to 21 percent. The big change and regulations and there are. All kinds of in the market. We've also seen a lot of growth recently looking good. And I think investors are highly confident. Shaken. Because we saw that happen in January February of this year. We had a correction in the market.
And that could happen again. You had a terminal that really does tell them what you're talking about. And the contentment in government policy has to change your conversation and really have an increase in those carry favorable news. Does that mean investors are correct based on what they hear.
Or are there any need based on what they hear on the irrational. Well actually people are pretty smart. Very hard to resolve. Both. Sides of the comments and insight from historians.
And was international policy. I mean nobody knows. Yeah I have not like I'm very excited to have them at Harvard in.
China. You have any currency. China and the EU had their currency like a trade war to us said war. That's more like that. I like what you've seen in the last 24 hours.
Through his Twitter account of course. And taking away our big competitive edge as usual not a loving level playing field. The president Dr. Robert Shiller. Let's talk about this because you spend a lot of time examining the whole notion of a narrative and that the pace of the narrative has increased so dramatically and in turn as we're just seeing on that tweet. How does that play out to where we are today. Well you know. Donald Trump. Is an expert on narratives.
And I can quote Donald Trump that he talks about ghostwritten but I think they were meeting with him. He's living a story and. Attempting to describe themselves. As. Kind of an infallible genius or a very simple genius who I think he put in. Trying to get them out that people think he might be right. I don't think independently.