While many bears have pointed to the 10-year cyclically adjusted price/earnings (CAPE) ratio as a reason to avoid U.S. equities, Yale Economist and recent Nobel laureate Robert Shiller — who helped popularize the metric — says U.S. stocks still “should be a part of a portfolio”. Shiller tells Bloomberg Surveillance that, though the U.S. market is relatively highly priced according to the CAPE, it’s “not that overpriced”, and given the alternatives he thinks investors shouldn’t avoid U.S. equities. Shiller also talks about active vs. passive investing, saying, “I think that one can in the long run do better” than passive index funds, particularly with a value-oriented active approach.