BofA’s Subramanian Says Things ‘Kind of Awesome’ for Stocks
- Probability of recession, stagflation is 10% or less, she says
- Sticks to year-end S&P 500 target of 5,400, near current level
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As naysayers fret over a potential slowdown from the prospect of interest rates remaining elevated for longer, Bank of America Corp.’s Savita Subramanian says the economy looks good, a backdrop that will continue to bode well for US stocks.
Although some data points have softened — from labor market tightness to manufacturing and retail sales — most measures of the economy are normalizing from unsustainably lofty levels rather than pointing to a slowdown, she told Bloomberg Television on Wednesday. The probability of a recession or stagflation, when inflation remains persistently high while the economy slows, is 10% or less, according to Subramanian.