The scorching-hot stock market is fresh off yet another week of new record highs, yet one glaring question remains: When will it all come crashing down?

The global investment strategy team at Bank of America Merrill Lynch has an idea.

The firm, which has repeatedly warned of investor overexuberance, has identified what it sees as the perfect storm for a stock market correction - traditionally defined as a 10% selloff - and it involves four different metrics crossing particular thresholds.

According to BAML's analysis, such a reckoning will occur once (1) real gross domestic product (GDP) forecasts rise above 3%, (2) wage inflation climbs higher than 3%, (3) the 10-year Treasury yield exceeds 3%, and (4) the benchmark S&P 500 surges above the 3,000 level.

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