Bank of America strategist warns of risks of overheating in global stocks

According to Golden Ten reports, Bank of America strategist Michael Hartnett warned that the rally in global stock markets risks overheating. Bank of America's "Global Breadth Rule" shows that about 71% of indexes are above their 50- and 200-day moving averages, with numbers above 88% triggering a reverse sell signal. Hartnett has been more neutral on stocks this year, and he is broadly bearish on 2023, despite the SP 500 rising 24% in that time. The MSCI World Index hit another record high this month after suffering a setback in April on optimism that the Federal Reserve will begin cutting interest rates later this year. However, the index retreated this week and was on track for its first weekly loss in five weeks as strong economic data raised fresh doubts about the prospects for monetary easing.