(LATIMES) — NEW YORK — Stocks may be near record highs, but they are not terribly expensive, at least by one measure.

Last week the broad Standard & Poor’s 500 index closed above 1,500 for the first time in five years. This week the Dow Jones industrial average has been flirting with 14,000, a level it hasn’t seen since October 2007.

In early trading Tuesday, the Dow added 22 points, or 0.2%, to 13,905.

Stocks are a bit pricey relative to their earnings, but are nowhere near the overheated levels they’ve seen before, said Robert Shiller, a famed Yale University economist who identified the stock market and housing bubbles of the last decade.

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