BofA's Savita Subramanian on The New S&P 500: AI-Driven and Asset-Light | #567

My guest today is Savita Subramanian, Bank of America’s Head of U.S. Equity Strategy & U.S. Quantitative Strategy. Barron’s named Savita as one of the 100 Most Influential Women in U.S. Finance. In today’s episode, we cover the key trends shaping markets as we start 2025. Savita discusses the evolution of the S&P 500 over the past 50 years and why that leads her to be more comfortable with higher valuations today. Then she explains why productivity gains could drive the next bull market and why corporate margins have remained elevated despite inflation volatility. Plus, Savita weighs in on the future of small, mid, and large caps and why she favors selective stock picking over buying the index.