Optimism about stocks is still too high as the US economy is showing 'the overheat before the retreat', JPMorgan strategist says

• Investors are still too optimistic about the outlook for stocks, JP Morgan Asset Management's Meera Pandit told CNBC.
• The market's reacting to strong economic data, but that's 'probably the overheat before the retreat,' she said.
• The rally is built on investors choosing the best narrative, but 'you can't have your cake and eat it too,' Pandit said.

Investors are still a little too optimistic on stocks, given the recent strong economic data out of the US suggests a bout of overheating before a potential downturn, according to JP Morgan Asset Management's global market strategist Meera Pandit.