AIM:SPA 12 December 2025

June 8, 2026, 1:52 AM EDT. Savita Subramanian, head of U.S. equity and quant strategy at Bank of America Securities, cautions about parallels between current market conditions and February 2020. She highlights strong momentum in energy and tech sectors but warns of expensive valuations and disappointing consumer staples returns. Historically, staples' underperformance often signals big rebounds, with a notable 73% rise during the 2000-2002 tech bust. Subramanian calls the S&P 500 the "most-crowded ticker" globally, flagging new stock issuance and capital expenditure surges that reduce free cash flow and share buybacks-key drivers for the index. She favors select sectors like financials, energy, materials, and staples, and maintains a year-end S&P 500 target of 7100, about 6% below current levels.