Worries Over Big Tech Driving Stock Rally Are Overblown, BofA’s Subramanian Says

Bank of America’s Savita Subramanian says the US stock market should stop worrying so much that the current rally is too narrowly focused, and that big tech shares can still do fine if their duration risk is shortened.

“Narrow breadth is not a precursor for doom and gloom,” the firm’s head of US equity and quantitative strategy told Bloomberg Television’s Surveillance on Tuesday. “It’s kind of a false negative. When you look at valuations right now, they look high, which is another reason nobody wants to buy stocks. But valuations generally look high when you’re in an earnings recession, which we are in right now. I think that when you look at the equity risk premium for stocks, it could actually go lower.”