The bull run in U.S. stocks is creating a great deal of complacency, said James Macey, portfolio manager at Allianz Global Investors. Macey warned investors against chasing returns in U.S. stocks, especially highly valued tech and biotech shares. Instead, he recommends investors diversify their portfolios by seeking out high quality, reasonably valued, dividend paying stocks. As for bonds, Macey suggested short duration, higher yielding bonds including mortgage backed securities. Another place to find yield, said Macey, is in global REITs. Finally, he said emerging market stocks in China and Korea are relatively cheap and offer significant upside.