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‘Definitely a bubble brewing’ in stocks: Pro

Monday, 4 Nov 2013 | 1:24 PM ET
'Definitely a bubble brewing' in stocks: Pro
Monday, 4 Nov 2013 | 12:00 PM ET
The market might be heading into bubble territory, but it's not time to get out of stocks yet, Simon Baker of Baker Avenue Asset Management says.

The market might be heading into bubble territory, but it's not time to get out of stocks yet, Simon Baker of Baker Avenue Asset Management said Monday.

"I love the rally," he said. "I definitely think there's a bubble brewing, but you have to be long this market."

On CNBC's "Fast Money," Baker said he expected a specific sector shift within the remainder of 2013.

(Read more: Solar-power stocks with room to run)

"Where I'd avoid is the consumer-related names. Stay away from the retail-type of names. I think consumer confidence is going to be hit hard," he said. "But I think some of these commodity names take a bid. The dollar continues to get weaker. Emerging market data gets better, so a Rio Tinto, that type of names—those are where we're looking in the short-term to try to get a little rally between now and year end."

Stephen Weiss of Short Hills Capital said he saw further room for stocks to climb.

"As the economy gets stronger and bonds go back to a rising-rate environment, that's when you'll see more money shift into equities," he said. "Rates on the 10-year touched 2.49, 2.48, so they continue to find safety in that, but you will see the generational move into equities. That's when you'll see the market go into hyperdrive. That's when there may be a bubble. To me, there are no signs of a bubble right now."

(Read more: 'Yellow flags' in auto stocks: Analyst)

OptionMonster's Pete Najarian noted that financials have not participated in the recent stock rally, adding that he was watching energy names, such as Denbury Resources and Whiting Petroleum.

Joe Terranova of Virtus Investment Partners, too, said that there was "tremendous opportunity" in the financials and in the energy sector.

"The economic data points look strong," he said. "It looks like growth accelerates."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Nov. 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Baker is long AAPL, BAC, SBUX, FB, GOOG AMZN, GPS. MU, LVS; Stephen Weiss is long EZU, AAMRQ, LCC, WLT, BTU and short JCP; Pete Najarian is long stock AAPL, long calls C, MS, INTC, YHOO, SBUX, FB, MSFT, MU, CLF, BTU; Joe Terranova is long VRTS.

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