It's been a glorious month for ASX shares, and investors, so far this June. Back on 11 June, the index finally clocked a new all-time record high, its first since February.
It capped off an extraordinary two months, which have seen the ASX 200 rise nearly 17% from the lows we saw in April following the rather chaotic 'Liberation Day' tariff announcements out of the United States.
Today, the ASX 200 is sitting a little below that record high, currently at 8,558.6 points. With the markets near record levels, it's a great time to be invested in ASX shares. I'm sure there are more than a few happy and satisfied investors out there right now, despite the geopolitical and economic uncertainty still present in global markets.
However, it's a less rosy time for those investors who might want to start buying ASX shares, or at least want to buy more. With the index at near-record levels, so too are many popular ASX 200 shares.
Commonwealth Bank of Australia (ASX: CBA) stock is the poster child for this, with CBA clocking its 23rd record of 2025 of $192 a share just this morning.
But we've also seen others rise to either multi-year or all-time highs in recent months. These range from National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC), to Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), and Telstra Group Ltd (ASX: TLS).
As many investors know, the higher a company's share price is relative to its earnings, the lower the likelihood of expected returns. So with that in mind, here are two ASX shares that I'm avoiding in today's elevated market.
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2 ASX shares I'm avoiding right now
First, let's talk about the Commonwealth Bank. As we've already established, this bank stock looks unassailable right now after rising by more than 24% in 2025.
However, this rise leaves investors highly vulnerable, in my view. We've long discussed how most ASX experts regard CBA shares as grossly overvalued. The bank has risen a whopping 94% or so since only October last year. That's despite stagnant earnings growth and a price tag that makes it one of, if not the, most expensive bank in the world. Buying CBA today will get an investor a dividend yield of under 2.5%.
That means if you wish to buy the bank right now and beat the market over the long term, most of your returns will need to come from further share price appreciation. Now, that's possible, of course, as all things in the market are. But I wouldn't be banking on it, if you'll pardon the pun.
Another stock to steer clear of
Next up, let's discuss energy stock Woodside Energy Group Ltd (ASX: WDS). Woodside shares have been on a bit of a rollercoaster ride in recent weeks, thanks mostly to the volatile situation in the Middle East. Woodside shares, despite losing almost 15% of their value over the past 12 months, have rallied strongly (about 25%) since early April.
Investors who think this oil and gas producer might have further to run could be mistaken, though, at least in my view. Despite the potential for supply shocks in the coming weeks, it's my view that oil prices will continue to fall, as has been the trend for a few years now. If that does happen, don't expect Woodside shares to go anywhere fast.
Given the uncertainty for fossil fuels in the decades ahead, I think investors are best off looking elsewhere for returns. That's despite the allure of Woodside's apparent 7.8% dividend yield today.
