‘It’s really easy to navigate’ this stock market, says a BofA star strategist. Here’s what she says to do
Head of U.S. equity and quantitative strategy at Bank of America, Savita Subramanian offers her best strategy for navigating topsy-turvy financial markets as...
“I think it is really easy to navigate these markets — and I’m going to tell you how,” Subramanian said on CNBC Wednesday afternoon, following a closely watched rate decision by the Federal Reserve.The BofA strategist said the Fed has created an environment in which assets boasting inflation-protected yields are the most desirable for investors within equities.
She pointed to small-capitalization stocks as an area where investors could identify such assets, which would benefit from a solid U.S. economic recovery and offer consistent yields at a comparatively attractive price.She said that small-caps are trading at a lower valuation compared with large-caps, so you get “more earnings yield for the same price.”
Within that area, she pegged energy and financials, which incidentally were big contributors to Wednesday’s gains, as solid plays because they “benefit from inflation rather than being hurt.”The S&P 500’s energy sector SP500.10, +3.16% surged 3.2% on Wednesday and financials SP500.40, +1.58% soared 1.6%. Overall, the S&P 500 index SPX, +0.95% and the Dow Jones Industrial Average DJIA, +1.00% rose 1% on Wednesday for the best one-day gain for the benchmarks in about two months. The technology-laden Nasdaq Composite Index COMP, +1.02% also closed up 1% for its best day since Aug. 27. headtopics.com
Meanwhile, small-capitalization Russell 2000 index RUT, +1.48% rose 1.5% and posted its best daily gain since Aug. 27.On Wednesday, the Federal Reserve signaled that it is nearing a tapering announcement for its bond-buying program and might even move up its timetable for raising interest rates to 2022, reflecting a strong conviction the economy is on the path to full recovery.
The Fed maintained its forecast that inflation would fade back toward 2.2% by next year. Meanwhile, the central bank expects the rate of inflation to top out around 4.2% in 2021, according to its new projections. Read more: MarketWatch »
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Wonder if she could navigate Bofa deez When the fed is pumping the market of course it’s easy. BofA..! BofA really..? Aren’t they part of the Fed..? O’h my bad there just BofA Lawyers in continuous Law Suits… Oh boy... such disrespect. Never say 'really easy' and stock market in the same sentence. Market will humble you.
Here's what three experts say after yesterday's market pullbackYesterday, the Nasdaq and S&P 500 took their worst losses since May. Three experts discuss where they see the markets headed now. Buythefuckindip Fixed it.
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Investors believe it's time to get very conservative in the stock market, CNBC survey showsMore than three quarters of the respondents said now is a time to be very conservative in the stock market, according to a new CNBC Delivering Alpha survey. So we hit a bottom is what I hear No they don’t. Surveys create headlines, but actions speak louder than words. In percentage terms, the overwhelming majority remain just as invested as they were 6 or 12 months ago. That’s the best signal yo BUY now 🚀
Why the stock-market ‘wild card’ isn’t Evergrande, it’s WashingtonThe potential for another white-knuckle flirtation with a U.S. default via a debt-ceiling showdown is helping to raise policy uncertainty. The good news, is... I assume it then remains evergrande Interesting headline..
The 10-year Treasury likely won’t be climbing to 2% this year, says strategistBroker-dealer LPL Financial is cutting its expected range for the benchmark 10-year Treasury yield to 1.5% to 1.75% by year-end from an earlier forecast as... You shouldn't need Burry to tell you that Good luck with that. We are getting a bear rally (rates down) over the next few days and then rates are going up up up. RemindMe_OfThis in 3 months.
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