Markets fell on Tuesday.
The S&P 500 fell 0.2 percent and the STOXX Europe 600 fell 0.6 percent.
The Nikkei 225 was flat but most other Asian markets fell.
A survey by Bank of America Merrill Lynch showed that a record net 48 percent of investors say stocks are overvalued but a net 16 percent say they are taking on above-normal levels of risk, also an all-time high.
“A record-high percentage of investors say equities are overvalued yet cash levels are simultaneously falling, an indicator of irrational exuberance,” said Michael Hartnett, the bank’s chief investment strategist.
That may be leaving markets vulnerable.
“Overstretched valuations, tighter monetary policies, geopolitical risks, a slowdown and high debt levels in China, and low inflation are some of the factors that could potentially trigger a market correction,” said Hussein Sayed, chief market strategist at FXTM.
Also, Matt Maley, equity strategist with Miller Tabak, told CNBC that the US stock market could be impacted if the “very, very” overbought Japanese stock market declines further.
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