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Bank of America says stock market peak risks are rising

Bank of America says stock market peak risks are rising

BofA said about 70% of its bear-market indicators were triggered and the S&P 500 looked overvalued, while Serenity noted the bank's earlier Korea chip bubble warning was followed by record highs.

Fact Check
The CNBC article 'Bank of America says take profits: Too many red flags' (June 8, 2026) directly confirms that 7 of 10 (= 70%) of BofA's bear-market signposts have been triggered, matching the average level reached before past bear markets since 1990, and that strategist Savita Subramanian urged caution with a 7,100 year-end S&P 500 target. The @DeItaone X post on the same day echoes this with the explicit ~70% figure and the same supporting reasoning (expensive US stocks, rising speculation, concentrated gains). The earlier Business Insider piece confirms 70% is BofA's historical threshold for a market peak. All key elements of the claim are corroborated by primary news reporting.
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Summary

Bank of America warned in a June 5 report led by Savita Subramanian that risks of a stock market top are increasing, saying roughly 70% of its bear-market indicators had been triggered and that the S&P 500 was statistically overvalued on 17 of 20 metrics. The bank also pointed to widening performance gaps and rising capital expenditure among mega-cap cloud firms as signs of speculation and market divergence. On June 9, Serenity challenged investors treating BofA's bearish view as definitive, citing the bank's March warning that EWY/KOSPI-linked Korean memory chip stocks tied to SK Hynix and Samsung were in an extreme bubble, after which those shares went on to reach record highs.

Terms & Concepts
  • bear-market indicators: Signals used to assess rising downside market risk.
  • capital expenditure: Money companies spend on long-term assets and infrastructure to support future growth.
  • EWY/KOSPI: Korea equity benchmarks and market proxies.