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Fareed speaks with Steve Rattner, chairman of Willett Advisors, about the U.S. economy.
Robert Shiller, the economist who predicted both the tech bubble and the housing bubble, says we're back in bubble territory. What do you say to that?
Stocks are expensive. There's no question about that. By any historic measure, we look at the price of stocks relative to the earnings of the underlying companies, they're trading at about 16 times earnings, which is high. It's above its long-term historic average.
And you do see little bits and pieces of what I'll call “bubblets” around in the sense that you had a number of tech stocks that were quite high, Twitter, for example. Now they've started to come back down again.