Stock valuations are elevated, at least according to the Shiller price-to-earnings ratio, also known as the cyclically adjusted price-to-earnings ( CAPE ) ratio. This ratio recently crossed 40, officially making it the second-most expensive market in history, behind only the dot-com bubble .

Another measure that has some investors raising their eyebrows is the Buffett indicator, named for famed investor Warren Buffett. This indicator measures the total value of the U.S. stock market in relation to the size of the U.S. economy (as determined by gross domestic product (GDP)). This measure is nearly 225% and has surpassed a level Buffett has called "playing with fire."

With these elevated valuations, investors may be hesitant to jump in and buy stocks. However, there are still value o

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