Three years later, Shiller not as worried

Three years ago, in his book “Irrational Exuberance,” Robert Shiller predicted that the stock market’s party would soon be over.

He was right. So now what -- with the Standard & Poor’s 500 index of blue chip stocks down 41% from its peak?

“I haven’t billed myself as someone who has a month-to-month market call,” Shiller says dryly.

He said he “wouldn’t write a book about irrational exuberance today,” but the stock market overall “still seems overpriced.” Even so, he is considering investing more in stocks, where he now has very little, he said.

Investors, he said, should above all focus on the need to be diversified. “Stocks, bonds and real estate, in proportion, sounds like a sensible strategy” for the long run, he said.