Attractive investment opportunities are slim in the stock and bond markets, says David Giroux, manager of T. Rowe Price Capital Appreciation fund, which invests in both.

"It is a challenging environment for a multi-asset class manager, especially a multi-asset class manager who really cares about protecting clients' downside," he tells Morningstar.

"The equity market is somewhat expensive. The median company in the S&P 500 is trading around 17 times earnings now. That's basically the highest valuation level that we've seen in the last seven years."

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Giroux likes Danaher, a maker of consumer and industrial products, and AutoZone. "But there are very, very few of those kind of names, many fewer names than there were in 2011 or 2009."

And the bond market doesn't offer much solace, Giroux says. "Typically, when you see the equity market somewhat expensive, it means maybe bonds are attractive," he notes.

"The challenge is that interest rates are still low. They have come up significantly off the bottom, but still relative to history, relative to where they should be, they're probably still a little bit low."

Not everyone agrees with Giroux on stocks. With the S&P 500 less than 2 percent below its record high, many investors remain bullish.

"I suspect most companies are going to raise guidance for the upcoming quarters thanks to the pumped up demand and the spring thrall," Patrick Spencer, head of equity sales for Robert W. Baird in London, tells Bloomberg.

"The economy remains in a sweet spot. I’m very optimistic for this year."

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