BofA's Hartnett advises buying oversold sectors like China tech and healthcare, selling overbought semiconductors and tech in May.

Bank of America's chief equity strategist Michael Hartnett highlights key sectors to buy and sell in May amid signs of a potential U.S. economic upswing. He notes that semiconductors, oil shares, Taiwan stocks, tech stocks, and AI-related plays are currently overbought and may face corrections. Conversely, oversold sectors such as China tech, global defense, healthcare, and Treasury bonds could see gains if positive developments occur, especially from the Persian Gulf. Hartnett's insights suggest a cyclical economic recovery might be on the horizon if bond yields remain controlled.