But despite the gains this year, a host of recent headlines should give investors pause and make them consider taking some profits off the table.
Consider that the “dumb money” is returning to Wall Street, with U.S. stock mutual funds attracting more cash this year than they have in any year since 2004. And the Dow Jones just set its 35th high of the year — topping the number of new highs the index set in 2007 before stocks peaked.
Now, for some time, bears have been making noise about how the market seems to be overvalued … and that hasn’t stopped a heck of a run in 2013. But it’s undeniable that there are parts of the market that seem to be running on fumes and set to take a spill at the first sign of broader weakness.
If you’re worried things might be overbought or you’re simply looking to avoid risky areas as you rebalance your portfolio and seek new opportunities, steer clear of these five bubble investments.