Nobel Prize-winning economist Robert Schiller believes the recession can take years because of Trump's bullish effect on the market.
According to a professor at Yale University, President Donald Trump is creating an environment conducive to high consumer spending, and this is a major force that should hold the recession.
"Consumers are hovering there. You may be wondering why this is so late in the cycle right now. This is the longest extension ever. Now, you can say that enlargement is partly [President Barack] Obama, "he told CNBC's Trade Nation on Friday." But holding back on that for a long time needs to be explained. "
Schiller, a behavioral finance expert , which is out with the new book, "The Native Economy," thinks Americans are still opening their wallets broadly based on what President Trump illustrates: Consumption. [1
Schiller stresses that there is still uncertainty and risk around Wall Street
Before markets can emerge, Schiller stresses that President Trump must go through the impeachment investigation, which he sees as the biggest threat to the optimistic
"The Trump Age"
"If it survives, it can contribute to some time to stimulate the market," Schiller said. "Maybe we are in the Trump era and I think Donald Trump was inspired effect on the market – not just for tax cuts. ”
Despite optimism Schiller's handsome stance, he warns, is not everything pink in the economy. Its Shiller PE Ratio, also known as CAPE, tracks price / earnings ratios based on average inflation-adjusted earnings over the past 10 years. He warns that it is still at a relative level.
"I'm not saying I'm so bullish because I have a bearish CAPE ratio," said Schiller, who predicted at Trade Nation last March that there was a 50% chance of the economy falling into recession within 18 months.
Still, he adheres to the idea that there should be a lot of profit margins for the economy and markets if President Trump remains in office because of his pro-spending
Schiller argues that the next recession may not come another three years and it can be light.
"Let's not make the mistake of assuming it is just around the corner," Schiller said. "If the economy is strong, this is what he's building, it's the case of 'Make America Great Again,' he has a great chance of being re-elected."