Robert Shiller from irrational exuberance fame shares this year's nobel prize in economics along with two fellow americans, Eugene Fama and Lars Peter Hansen from the economics hot bed, university of chicago .
The Royal Swedish Academy of Sciences said the three, through separate research, had laid the foundation of the current understanding of asset prices.
While it's hard to predict whether stock or bond prices will go up or down in the short term, it's possible to foresee movements over periods of three years or longer, the academy said.