Robert Shiller, a co-winner of this year's Nobel Prize in Economic Sciences says US stocks are expensive

Robert Shiller, a co-winner of this year's Nobel Prize in Economic Sciences says US stocks are expensive. They are the most expensive relative to earnings they have been in more than five years, since the lows following the great collapse of 2007-09. Shiller's CAPE ratio compares the Standard & Poor's 500 Index with companies' average profits over the prior decade. The ratio ended last month at 23.7, the highest since January 2008. Despite expressing concerns the market might correct down, Shiller also comments that these results should not be read with alarm and that one could well and probably should, in a diversified portfolio invest in stocks. (VIEW LINK)