Part 2 of 2
American investors have had a love-hate relationship with stocks since their early days of trading under a buttonwood tree on Wall Street in 1792. However, recent setbacks, including a challenging year for equities in 2022 and rising yields on fixed-income investments, have led to a cooling of investor sentiment. In this blog post, we welcome Savita Subramanian, an influential strategist serving as the Head of U.S. Equity and Quantitative Strategy at BofA Global Research. She challenges the prevailing negative perception of stocks and presents research-backed evidence of their value as long-term investments.
Subramanian, recognized as a top-ranked analyst by Institutional Investor for the last ten years and featured on Barron’s list of the 100 Most Influential Women in U.S. Finance for three consecutive years, her expertise is highly regarded in the industry.
In part two of our interview with Subramanian, she sheds light on the significant market trends and explains why stocks should be considered for long-term ownership. Explore her insights and gain a deeper understanding of the enduring value that stocks can bring to your investment portfolio. Also, watch Part One here.
WEALTHTRACK Episode #1948 broadcast on May 26, 2023
Listen to the audio-only version here:
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We have compiled additional information and content related to this episode.
- Head of U.S. Equity & Quantitative Strategy
- Head of Environmental, Social & Governance (ESG) Research
- BofA Global Research
AVOID MARKET TIMING
S&P 500 returns by decade 1930-2020 (as of 2/28/23)
- If you miss 10 best days per decade, you will underperform the market by a huge margin
- True for each 10-year period
S&P 500 cumulative returns from 1930 to 2/28/23
- Missing ten best days per decade: return is 33%
- Staying fully invested: Return is 18,761%
Source: BofA Global Research Equity Strategy Focus Point: Cash for the near term, stocks for L-T, but be wary of bonds 3/29/2023
ALL-WEATHER DIVIDEND STRATEGY
OWN “QUINTILE TWO” DIVIDEND PAYERS
- Best-kept investment secret
- Buy companies paying reasonable dividends, not the highest
- Avoids downside risk of dividend cuts
- High return potential
Savita Subramanian from the WEALTHTRACK Archives:
STAYING AT THE TOP OF THE GAME
Savita Subrmanainian has been voted one of Wall Street’s top strategists in Institutional Investor magazine’s prestigious investor survey for ten years running. How does she stay at the top in this very competitive field?