Though the stock market is "overpriced," it's still probably "not a bad investment, all things considered," Nobel-winning economist Robert Shiller told CNBC on Tuesday.
To Shiller, a professor of economics at Yale University, the housing market might provide a decent return on investment, too.
"If it doesn't go down, [housing] might be a good investment. We're living in a world of disappointing investments, so absolutely," Shiller said on "Squawk on the Street." "But I say the same thing about the stock market, you know, I think it's overpriced. It's not a bad investment, all things considered."
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Equity prices have reached lofty levels as investors overreact to mounting geopolitical tensions, among other concerns, Shiller said.
"You might think the stock market should go down when people are anxious. But people are anxious now because of the international situation … and they're anxious now because inequality is getting worse. People are worried about being replaced by a computer," Shiller said. "All these things are on people's mind and it creates kind of a desire to save more … and they bid up the prices of everything."