All the cash on the sidelines and the bullish sentiments on blogs and cable television could mean that the markets have more run in them, even beyond the 60 percent runup in many asset classes since the March low point.
But the bottom line is that it's getting very hard to find obviously undervalued shares, or other assets for that matter.
Many smart guys who had the guts and money to buy at the depths are cashing out --convinced that risks of continued exposure outweigh possible rewards of staying long.
Worried about what to do with your profits? The message of my recent Forbes column, Don't Be A Sucker, Take Your Gains, is caution: better to be safe.
Yes, the yield on cash is zero. Cash is trash right now, and promises to continue to be. Don't obsess about getting zero income; it's better than double-digit losses.
Want some ideas about how to put money to work? Even with gold at a record, it makes sense to have gold in your portfolio. From my Forbes column Run With The Gold Bulls:
Don't be frightened by talk of a gold bubble. There won't be a bubble unless the cost of money rises sharply, the dollar strengthens and the budget deficits are reduced--scenarios that seem remote. According to Frank Holmes, CEO of U.S. Global Investors (GROW), gold trades 80% of the time in an inverse relationship to the dollar.
Another suggestion, from Guardian Life Insurance chief investment officer, Thomas G. Sorell: 5% residential mortgage-backed bonds with three- to four-year maturities--a risk he says is worth taking.
Keith McCullough, CEO of Research Edge, an investment research firm, in our video interview posted on Forbes.com, compared today's environment to October 2007. While he had some stock suggestions -- Bally (BYI), Amgen (AMGN) -- he also noted that "the reality that a lot of things you can buy are overbought."
In another video interview, Fund manager Nick Thakore said he was bullish on some companies passed over by most investors: Motorola (MOT) and Gannett (GCI). Gannett will benefit from an uptrurn in advertising, he said. Motorola has a new CEO -- Sanjay Jha, a "very impressive person" Thakore said -- and some solid phones (the Android).
What matters most right now: huge run up, record deficits, costly wars. It's time to take your profits.
Watch: More Robert Lenzner StreetTalk interviews with top investors. Click here.
Follow Robert Lenzner on Twitter: www.twitter.com/boblenzner