More than 150 stocks in the S&P 500 are trading just 5% away from their 52-week high.
The firm's strategists say that in the absence of a recession, central banks won't be in a rush to reduce rates.
Strategist Michael Wilson sees the S&P 500 at risk of a near-term drawdown.
Stocks are “as stretched as they can get,” the firm's chief strategist said.
Health care, staples and utilities are some of the sectors they recommend.
The strategist said he's not convinced this is the start of a “brand, new shiny bull market.”
The recovery in equities has been led by tech giants as investors shifted toward companies with strong earnings potential.
Even record dividends aren't tempting investors enough.
Volatility readings have also fallen to the calmest levels seen in over a year.
Strategist Michael Hartnett recommended selling the S&P 500 at 4,200.
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