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 the surprising resilience of corporate margins 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.

(0:00) Intro

(0:34) Sponsor: Farmland LP

(2:02) The evolution of the S&P 500

(5:13) Does the market deserve a higher valuation?

(11:02) 2025 market outlook

(14:34) Corporate margin expansion and efficiency

(19:43) Fixed income alternatives and large cap value stocks

(26:03) IPO trends and private markets

(32:23) Reshoring and US infrastructure investment

(38:12) Market shift to focus on total return

(51:17) Old economy stocks and global market opportunities

(58:35) Most memorable investment

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For detailed show notes, click here

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Sponsor: Farmland LP is one of the largest investment funds in the US focused on converting chemical-based conventional farmland to organic, sustainably-managed farmland using a value-add commercial real estate strategy in the agriculture sector. Register here for their webinar on March 12.

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more.

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