In a new report out this week, Bank of America analyst Michael Harnett discusses the current tumultuous environment for global markets. According to Harnett, there is both good news and bad news for investors, and Bank of America sees several ways to trade the chaos.

The Good News

According to Harnett, there are three pieces of good news that have resulted from recent global market movements. First, almost every major global equity market recently fell below its 200-day and 50-day moving averages, which triggered a buy signal according to Bank of America’s Global Breadth Rule.

Second, fixed income markets have been strong in recent days, indicating that a global meltdown in stocks is unlikely.

Finally, global financial conditions (falling interest rates, low oil prices and a strong dollar) are favorable for growth and risk-taking and provide opportunities that Harnett believes will be too good to pass up for investors.

The Bad News

Despite the positive indicators, Harnett also discussed…

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