Nobel Prize-winning economist Robert Shiller says US stocks are among the most overpriced in the world. But he’s not ditching American equities altogether.

Shiller tells CNBC that his cyclically adjusted price-to-earnings ratio for US stocks — which uses inflation adjusted earnings over the past decade — is quite high.  “My CAPE index … is higher than it’s been, except 1929, 2000 and 2007,” he said. Shiller didn’t say the market was in “bubble” territory, and said that he does have money in US stocks. But he said not to be too exposed to the US. “Some people are not very diversified internationally,” he said. “This is a good time to rethink that.”

Shiller, one of few strategists to warn of the housing crash, said he didn’t think the housing market is now in “a flaming bubble. … The housing market has had diminishing momentum,” he said. “It’s down to just kind of average performance. We saw a bottoming out of the housing market in most U.S. cities around 2012. And then we saw really rapid increases … [which are] starting to fade.”