A Rally That Won’t Stop or a Bubble About to Pop

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Investment advisers generally aren’t that gloomy. Even the cautious ones find niches that they expect to offer a decent risk-reward balance.

Mr. Kantor expects companies that have done well during the pandemic to press their advantage, including Visa, Amazon and UnitedHealth. He views these as “businesses that will continue to prosper when business returns to normal” because of their “technology, scale, clean balance sheets and knowledge of their customers.”

Mr. Hyman advises rotating into high-quality stocks that have underperformed during the rally, including those of companies with strong dividend growth. He also likes high-yield bonds and shares of smaller companies, whose prices have doubled from the March lows but have underperformed over longer periods.

Saira Malik, head of equities at Nuveen, also favors smaller companies, which she said “could continue to outperform as the world reopens.” She also recommends financial and health care stocks, and high-quality tech stocks that have lagged their peers, including Alphabet, the corporate parent of Google.

Ms. Malik finds opportunities overseas, too, particularly in “deep-value emerging markets,” such as Brazil and others in Latin America that have been especially hard hit by the pandemic.

“We’re looking for areas that have lagged due to Covid-19, not outperformed due to it,” she said.

Mr. Benkendorf is another fan of stocks in emerging markets, which he called “a very bright long-term story, still.”

“Emerging markets have begun a good catch-up game,” he said. “The development story is much clearer. There is incremental growth to come.”

International stocks of all sorts appeal to Mr. Faber.

“The bad news is the U.S. is expensive, the good news is the rest of the world is pretty reasonable,” he said. To stay out of trouble, his advice is to “diversify into foreign, tilt more into value stuff, and have realistic expectations.”

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