Latest news with #SavitaSubramanian
Bloomberg
4 days ago
- Business
- Bloomberg
Bloomberg Surveillance TV: August 8th, 2025
- Savita Subramanian, Head: US Equity & Quantitative Strategy at Bank of America - Bruce Hirsh, former Chief International Trade Counsel at the US Senate Finance Committee - John Vinh, Equity Research Analyst at Keybanc - Collin Martin, Fixed Income Strategist at Charles Schwab Savita Subramanian, Head: US Equity & Quantitative Strategy at Bank of America, discusses the equity bull case and her S&P 500 target. Bruce Hirsh, former Chief International Trade Counsel at the US Senate Finance Committee, discusses the Trump administration's tariff strategy and outlook for US trade. John Vinh, Equity Research Analyst at Keybanc, talks about Intel after President Trump called on their CEO to resign. Collin Martin, Fixed Income Strategist at Charles Schwab, discusses how the bond market is pricing in recent economic data.
Bloomberg
4 days ago
- Business
- Bloomberg
Market Broadening Actually in the Works: Subramanian
00:00 Savita Subramanian of Bank of America, writing Sentiment is far from euphoric. The consensus Wall Street broker is recommending an average allocation of just 56% to US stocks. This is not euphoria. Savita joins us now. Thank you so much. Good morning. Thanks so much. Thanks for joining us. So it's not euphoria. What are we in right now? What is this world? Yeah, this world feels weird, but I think we're we're in that sort of wall of worry stage where there are certain themes that are getting a lot of credence and credibility. Like I other themes are kind of falling out of bed like GLP one, and then you've got this potential broadening of the market that we've all been waiting for with bated breath that I think is at a moment where it's, it's actually in the works. So if you if you read the transcripts and I love Lori's quote, but I think that when you read the transcripts, companies are worried, but they're also talking about the fact that they've delayed a lot of projects. They haven't canceled them. They've delayed them. That means there's a lot of pent up activity, business activity in the pipes that is likely to be unfurled over the next couple of quarters. And I think what really stymied that pickup in broadening and, you know, kind of other companies actually moving from, you know, their very low, low multiples and low, low levels is the idea that we're past a lot of the tariff uncertainty. I mean, granted, there are curveballs that are thrown at us every day, but we do know what's going on with Europe. You know, we've got a better handle on how companies can actually plan and do business. We're also starting to see, I think, the beginnings of this M & A cycle, even cross-border M & A. So I think those are other animal spirits that could unleash a broader pick up in economic activity. And then when we look at things like, you know, companies reporting, I think what's really noteworthy is that at this point, about 80% of companies have beat on revenue. That's new. We haven't seen this revenue surprise in a while. So what that means is that analyst markdown expectations very low for sales and demand and they're beating those lowered expectations. So I think this all bodes well for a broader market. I would stick with large cap value stocks, companies that are, you know, really in the penalty box but could actually start to work in an environment where, you know, we do see earnings broaden in a bigger pickup.
Yahoo
5 days ago
- Business
- Yahoo
The stock market still has a $7 trillion secret weapon that could boost gains into year-end
The stock market has $7 trillion on the sidelines that could end up being a huge boost. That's the amount of cash held in money markets funds, which could rotate back into stocks, strategists say. Bank of America said the cash could begin to flow back in once the Fed cuts interest rates. Investors might be sitting on a secret weapon that could send stocks soaring. That's according to Wall Street strategists, who say that a big reason to be bullish on stocks in the near term is the record $7 trillion in cash investors have stored in money markets fund. That money — sidelined in assets like US Treasurys, money market mutual funds, and other short-term, highly-liquid debt instruments — could eventually make its way back into equities. That would be a huge boom for stocks, according to Savita Subramanian, the head of US equity and quantitative strategy at Bank of America. "We've still got a lot of cash, still got a lot of fixed income on the plate," Subramanian said, speaking to CNBC on Wednesday, speculating that money could make its way into equities once the Fed resumes its rate-cutting cycle. Central bankers trimmed rates twice in late 2024, but have held off on a third rate cut as they assess the impact of tariffs on inflation. But investors have ramped up bets for rate cuts after a weak July jobs report last Friday, betting that the Fed will cut rates at its September meeting. Markets are pricing in a 95.1% chance the Fed could issue a 25-basis-point rate cut at its next policy meeting, according to the CME FedWatch tool. The return on cash and bonds is also "not great," Subramanian added, another reason investors could eventually plough cash back into the stock market. Others have also touted the potential boost from record amounts of cash coming off the sidelines. Tom Lee, the head of research at Fundstrat, said it is one reason he remains optimistic on equities in a note last month. Lee, known as permabull bull on Wall Street, said he still sees the S&P 500 reaching 6,600 by the end of the year, implying around 4% upside from current levels. "The bull market has proven itself intact," he wrote, referring to the benchmark index's record-breaking rally in recent months. Kristy Akullian, the head of iShares investment strategy in the Americas at BlackRock, also referenced the large amount of cash in money market funds recently. "A portion of those funds could be poised to come off the sidelines if investors — like us — anticipate rate cuts without an accompanying recession," she wrote. Read the original article on Business Insider Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
6 days ago
- Business
- Business Insider
The stock market still has a $7 trillion secret weapon that could boost gains into year-end
Investors might be sitting on a secret weapon that could send stocks soaring. That's according to Wall Street strategists, who say that a big reason to be bullish on stocks in the near term is the record $7 trillion in cash investors have stored in money markets fund. That money — sidelined in assets like US Treasurys, money market mutual funds, and other short-term, highly-liquid debt instruments — could eventually make its way back into equities. That would be a huge boom for stocks, according to Savita Subramanian, the head of US equity and quantitative strategy at Bank of America. "We've still got a lot of cash, still got a lot of fixed income on the plate," Subramanian said, speaking to CNBC on Wednesday, speculating that money could make its way into equities once the Fed resumes its rate-cutting cycle. Central bankers trimmed rates twice in late 2024, but have held off on a third rate cut as they assess the impact of tariffs on inflation. But investors have ramped up bets for rate cuts after a weak July jobs report last Friday, betting that the Fed will cut rates at its September meeting. Markets are pricing in a 95.1% chance the Fed could issue a 25-basis-point rate cut at its next policy meeting, according to the CME FedWatch tool. The return on cash and bonds is also "not great," Subramanian added, another reason investors could eventually plough cash back into the stock market. Others have also touted the potential boost from record amounts of cash coming off the sidelines. Tom Lee, the head of research at Fundstrat, said it is one reason he remains optimistic on equities in a note last month. Lee, known as permabull bull on Wall Street, said he still sees the S&P 500 reaching 6,600 by the end of the year, implying around 4% upside from current levels. "The bull market has proven itself intact," he wrote, referring to the benchmark index's record-breaking rally in recent months. Kristy Akullian, the head of iShares investment strategy in the Americas at BlackRock, also referenced the large amount of cash in money market funds recently. "A portion of those funds could be poised to come off the sidelines if investors — like us — anticipate rate cuts without an accompanying recession," she wrote.
CNBC
6 days ago
- Business
- CNBC
We could see an economic boom from all the pent-up capital, says BofA's Savita Subramanian
Savita Subramanian, Bank of America Securities head of U.S. equity and quantitative strategy, joins 'Squawk Box' to discuss the latest market trends, state of the economy, weakness in the labor market, recession fears, and more.
