Odd Lots Why Savita Subramanian Thinks Stocks Can Keep Going Higher
11 snips
Apr 4, 2024 
Savita Subramanian, the head of US equity strategy at Bank of America, shares her optimistic outlook on the stock market. She explains her bold prediction of the S&P 500 climbing to 5,400, despite initial skepticism. The conversation dives into the resilience of stocks amid potential economic downturns and discusses the impact of technology and AI on market transformations. Savita also addresses concerns about overvaluation, reassuring listeners that the current climate is not reminiscent of the early 2000s bubble.
AI Snips
Chapters
Transcript
Episode notes
S&P 500 Composition Shift
- The S&P 500's composition has changed significantly, making historical comparisons less relevant.
- The index now has more asset-light growth companies and less debt, unlike previous decades.
Low Equity Allocation
- Savita Subramanian notes that despite record highs, many investors remain under-allocated in stocks.
- U.S. pension funds hold their lowest public equity exposure since the late 1990s, favoring alternatives.
Sell-Side Indicator
- Savita Subramanian's sell-side indicator suggests the market isn't overly bullish yet.
- This contrarian model tracks average equity allocation recommendations from Wall Street firms.