Investing for the future: stock market strategy, Savita Subramanian

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BofA's US stock chief highlights a 'tremendous opportunity' that's opened up for investors, and explains the adjustment they should make to enjoy stronger returns

Market volatility is up as investors try to assess the trajectories of inflation and interest rates.She says there is a great deal of opportunity for investors who focus on company fundamentals.

"One reason we're in such a roiling environment is, I think, instead of paying attention to fundamentals, investors are paying more attention to macro," she said."We've all been trained to ignore fundamentals and just pay attention to Fed speak, central banks, and then also pay attention to what quants are doing to extend any momentum."

"Despite the fact that energy has had a two-year streak of beating the market and tech having had one of its worst years ever, the average long-only mutual fund is now overweight tech and underweight energy," Subramanian said. Investors who've become used to buying and selling shifting positions based on macro factors and interest rates should get back in the habit of evaluating companies based on earnings, dividends, and cash flows, she suggested.

 

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