BOSTON (Reuters) – University of Chicago professor Richard Thaler may have won the Nobel Economics Prize on Monday for his work on behavioral economics, but the behavior of investors has him stumped.
Thaler said on Tuesday he is puzzled by the steady rise of global stock markets in recent years, even as many countries are gripped by political and social drama.
Mystery - Volatility - Time - Uncertainty - Thaler
“It’s a mystery to me. That, and the unbelievably low volatility in a time of massive global uncertainty seems mysterious to me,” Thaler said in a phone interview from his Chicago apartment.
Thaler also said his field could do more to research how human psychology affects things like inflation or interest rates.
Economists - Macro
“Behavioral economists have not invested as much in macro as I would like,” he said.
Thaler spoke as U.S. stocks flirted with new record highs on Tuesday. The S&P 500 index is up roughly 14 percent for the year amid optimism about the economy and corporate profits.
Thaler - Tone - Contrast - Acclaim - Monday
Thaler’s humble tone stood in contrast to the wide acclaim he received Monday when the 72-year-old was awarded the 9 million Swedish crown ($1.1 million) prize for his work on how human nature affects supposedly rational markets.
His research showed how traits...
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