Shiller Worried Covid-19 Will Leave Lasting Scars on Housing Market

The transcript discusses concerns about home price declines, particularly in urban areas, and the resilience of the equity market despite economic challenges. It highlights the impact of low interest rates on various markets and explores the Cape ratio's high valuation. The discussion also delves into the psychology of retail investors and the influence of media on market perceptions, emphasizing the risks in the current economic climate.

What is the speaker's main concern regarding home prices?

• Home prices will decline more in urban areas.

• Home prices will remain stable.

• Home prices will increase significantly.

• Home prices will decline more in suburban areas.

What has been observed in the equity markets despite economic challenges?

• A decline in NASDAQ indexes.

• Stability in equity markets.

• Record highs in equity markets.

• A crash in S&P indexes.

How do low interest rates affect asset prices?

• They stabilize asset prices.

• They cause asset prices to decrease.

• They cause asset prices to increase.

• They have no effect on asset prices.

What is a concern regarding the long-term impact of COVID-19?

• It will lead to lasting scars.

• It will have no lasting impact.

• It will only affect rural areas.

• It will boost urban growth.

What is the historical average range of the CAPE ratio?

• Low teens

• High teens

• Twenties

• Thirties

What is the speaker's view on the sustainability of the current market rally?

• It is definitely sustainable.

• It is a risky situation.

• It will crash soon.

• It is not influenced by psychology.

How do institutional investors currently feel about a possible market crash?

• More confident than retail investors.

• Unconcerned about a crash.

• Less confident than retail investors.

• Equally confident as retail investors.