Monday, September 28, 2009

“Mr. Bubble” and His Famous Chart

Contrary to our earlier report, Yale's endowment lost a few percent less than Harvard's. But both posted decidedly below-average returns for the twelve months ending last June. Lately, Yale's David Swensen doesn't look quite so ultra-smart.

Happily, Swensen isn't Yale's only investment egghead. Robert Shiller warned Greenspan about "irrational exuberance" in the stock market, then recognized the real-estate bubble. As David Leonhardt of The New York Times writes in a Yale Alumni Magazine cover story, Shiller is now celebrated as the creator of "The Chart … one of the signature pieces of economic research of the past generation."

"The Chart" and other Shiller charts are here. They'll help you show investors why recovery from the Great Recession probably won't be quick and easy.

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