Nobel Prize-winning economist Robert Shiller says that, while valuations are quite high, he isn’t ditching stocks.

Shiller tells CNBC that his cyclically adjusted price / earnings ratio is at about 27 for the S&P 500, far above its historical average of about 16. But he says that even at those levels, the indicated returns are greater than one could expect from the fixed income or housing markets. So while he has thought about ditching stocks, he has not done so. Shiller tells CNBC that oil prices historically have been a big factor in the market, but he also says that oil prices are not a random walk. He says that , given how far they have fallen, it’s reasonable to think that oil prices will rebound relatively soon.