There are opportunities outside the 'Magnificent 7' stocks in S&P 500: Savita Subramanian
Savita Subramanian, head of US equity and quantitative strategy at BofA Securities, talks about why she is bullish on US equities when many on Wall Street are cautious. Edited excerpts:
You are one of the most optimistic Wall Street equity strategists, while many are struggling to find reasons to be optimistic. Why?
One of the reasons that I'm optimistic is that I'm surrounded by pessimists. The crux of our bullish outlook is that sentiment is still fairly tepid on equities. In the US, there's been sort of an increase in optimism around certain themes like AI or drug discovery but broad-based bullishness on equities is hard to find. We are in that wall of worry type of environment where there's more trepidation than actual buy. The amount of fiscal stimulus and capex that's crammed by corporates could turn into a big positive surprise in the economy in years to come.
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What would make you pessimistic?
We would begin to get a little less enthusiastic when everybody else gets more enthusiastic. We would need to see a broadening out of the equity market. We would need to get a clear signal that the Fed going from zero to five is not going to derail the entire corporate and consumer sectors. We are starting to see that optimism building. In the last few months, we have
