Yale Economist Robert Shiller says he thinks stocks “look highly priced, but not super highly priced”. In an interview with Consuelo Mack on WealthTrack, Shiller says the market’s 10-year price/earnings ratio (which averages earnings over the past ten years) has historically averaged about 15; lately, it’s been around 20. But Shiller says it’s “not too disquieting” a number, and that, given the long-term success of stocks, investors shouldn’t avoid them. “I think that one might make a substantial investment in the stock market now — but with full knowledge [that] it shouldn’t be everything, because it is risky,” he says. He adds that there’s a “real chance of a substantial drop in stock prices — I’m talking big,” given the economic situation at home and abroad and — importantly — the impact they are having on people’s psyches.