Bank of America’s Savita Subramanian Conversation -MEB FABER Research
Savita Subramanian was not disappointed last week to come to podcasts!
SAVITA is the US stock strategy and quantitative strategy of Bank of America and is one of the most tracked investor strategists in Wall Street. Do not worry if you miss the episode. I pulled out the highlight (And a few of her epic charts).
Evaluation is not always a problem
ME’s value investors are having a hard time investing in the market when most of the evaluation indicators expand, but Savita has provided a new perspective.
“When you buy S & P 500 today, it’s unfair to compare your value with S & P in 1980. The index has been fundamentally changed. Half of them are now composed of asset lighting and labor lighting industries such as technology and health care. blank. At that time, the market was dominated by a large capital -intensive sector, such as manufacturing of structurally low margins. ”
See how the S & P 500 has evolved for decades.
Case of total revenue investment
In the last decade, total profits have been dominated by price audits. But Savita thinks dividends will return.
“We return to the world where dividends play a much larger role in total returns. Price audits have been dominant over the past decade, but historically, dividends have contributed almost half of the total revenue of S & P 500. ”
The two charts below emphasize the following:
It’s time to go optionally
Savita emphasized the importance of exceeding the index -level accident in today’s market.
“This year is the year I really want to choose. Do not buy attractive stocks within the benchmark. This index is distorted by a few mega cap companies, and we think it is worth finding elsewhere. ”
Translation: Early weight S & P 500
You can listen to the episode apologize or Spotify Or watch with the chart Youtube.