Bank of America's Savita Subramanian sees equity markets overlooking potential risks as investors focus on positive developments. The firm's US equity and quantitative strategy head worries that optimistic narratives may be drowning out cautionary signals ahead.

Her concern centers on a market mindset that's already priced in anticipated gains, leaving little room for unexpected setbacks. This selective optimism could leave portfolios vulnerable if the economic data or corporate earnings fail to match lofty expectations that have driven recent rallies.

What to watch: Subramanian's warning serves as a contrarian signal amid widespread bullish sentiment. Investors should scrutinize whether current valuations reflect realistic growth assumptions or merely an echo chamber of positive commentary that ignores persistent inflation and geopolitical tensions.