While U.S. stocks look pricey, valuations in Russia and Greece are much more attractive, says Nobel laureate economist Robert Shiller of Yale University.
His cyclically adjusted price-earnings (CAPE) ratio for the S&P 500, which takes into account 10 years of earnings, stands at 26.3, the fourth highest level in history, trailing only the pre-crash periods of 2000, 1929 and 2007.
"In Europe it's much, much, lower," he told
CNBC "Just looking at CAPE for Russia, it's under 8. The U.S. hasn't been that low since 1982."
Investing in Russia with a five- to 10-year horizon "might be a good strategy," Shiller said. And, "CAPE for Greece is under 4."
The Athens Stock Exchange General Index plunged 9.2 percent Wednesday alone amid concern about the new Greek government's demand that its debt burden be reduced.
Russia's dollar-based RTS stock index has plummeted 39.6 percent over the past year, as falling oil prices and Western sanctions cripple the Russian economy.
"Some people say that everything is overpriced right now, well there's some truth to that, but there's also still a lot of opportunities. The other thing is sectors within countries - you can go into low price sectors."
As for U.S. stocks, Abby Joseph Cohen, renowned senior investment strategist at Goldman Sachs, told
Barron's that "from an asset-allocation standpoint, 2015 will be a better year for U.S. equities than bonds."
Granted, the Federal Reserve might delay raising interest rates out of concern about the deflationary impact of a strong dollar and falling oil prices, she said.
"Nevertheless, equities are more attractively valued than fixed-income assets. My suggestions presume that the economy continues to grow."
The 30-year Treasury bond yield hit a record low of 2.30 percent Wednesday. The S&P 500 index' trailing price-earnings ratio totaled 19.71 Friday, up from 18.20 a year ago, according to Birinyi Associates.
Among the stocks that Cohen recommends are Carter's, which sells apparel and other products through brands including Carter's and OshKosh; FedEx; and Quest Diagnostics, which provides clinical laboratory services. Cohen noted that Carter's will benefit from falling cotton prices and a stronger dollar since some of its products are outsourced, while FedEx and Quest will both benefit from lower energy prices.
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