Markets may have shrugged off Brexit worries to hit new highs, but pricey stocks should make investors more cautious than ever, said David Bahnsen, chief investment officer for the Bahnsen Group at HighTower. 'Stocks as the new bonds is the most investable theme out there,' said Bahnsen. 'Investors have to weigh the attractiveness of the dividend yields and balance sheet strength of many low volatility, high yield sectors like utilities versus the clearly frothy valuations there.' One of Bahnsen's top stock picks is Blackstone (BX) - Get Report , down 14 percent year-to-date, calling it a "best of breed asset manager deeply misunderstood by markets.' He said Blackstone is being given no credit for its $80 billion of dry powder that can be deployed across real estate, credit, hedge fund, and private equity spaces. Meanwhile, he said investors can enjoy the company's 8.6 percent yield while they wait for more normalcy in capital markets. 'This is an investment into an elite management team that has the execution ability to win,' said Bahnsen.