Bank of America’s Largest Equity Strategist Seeks These Signals To Become More Optimistic About Equities


Reality hurts. The conservative outlook of the Federal Reserve and concerns about a second wave of viruses in the United States frighten investors on Thursday.
“The idea of ​​a prolonged recovery on the part of the Fed goes rather against the reopening of V-trading that has taken hold in the markets,” explains Jasper Lawler, head of research at the London Capital Group. . Still, we will need to see “more than a day or two of weakness” among great leaders – Facebook
+ 1.79%,
etc. – for greater correction, he said.

Certainly, this rally was overlooked by a piece of Wall Street. Monday, Savita Subramanian, head of US equities and quantitative strategy for Bank of America Merrill Lynch, issued a “mea culpa” for missing this series of actions, lowering her year-end target S&P 500 to 2 900 versus 2,600.
But given that the S&P 500 is currently hovering just under 3200, the bank still seems cautious. In our call of the day, MarketWatch spoke to Subramanian about the signals it needs to see to become more optimistic about stocks. For starters, it seeks a steady improvement in the employment situation, apart from an “immediate rebound” in really weak numbers, as was seen with the surprisingly good payroll data on Friday.
“I think we would also need to see signs of recovery among consumers. It would be important to see what the millennial consumer behaves like this. Does the millennial consumer go back and continue forming new households or is there some kind of fallout that has a psychological impact? Said the strategist.
“I think the risk with Millennials is that they had two really bad things that happened to them during the key stages of the training. They graduated from university during the global financial crisis, so they had a huge student debt and were forced to live with their parents, “said Subramanian.
Out of this crisis, they are now suffering a severe blow from the pandemic. “They are the largest spending cohort in the United States today, and I think the risk is that they will not spend as aggressively on expensive items as we have (Gen Xrs). Even though we had relatively strong degrees in the 1990s, we still spent a lot more money and we spent a lot, “she said.
In an uncertain market environment, Subramanian said the best option for individual investors with more than a short-term view is US large-cap stocks. “Mantra # 1 is just don’t panic sell and don’t panic buy, just have a long term horizon,” she said.

The market


and Nasdaq
+ 0.66%

futures fell further after weaker-than-expected job data, European stocks

and oil prices

also dropped significantly. A 3% drop for Australian stocks

leads the Asian markets to the south.

The tweet

Here’s what its about.


The graph below from Jesse Felder, blogging on the Felder report, notes the skyrocketing interest among young investors in the financial markets recently, which he attributes in part to brokers without commissions. But their unwavering attitude worries him.


Data shows that another 1.54 million Americans filed for unemployment benefits last week. Producer prices increased slightly.
German airline Lufthansa

plans to cut 22,000 jobs.

plans to reopen its southern California parks on July 1, with conditions, while the Stagecoach and Coachella music festivals are canceled for 2020. Meanwhile, President Donald Trump will hold his first rally in months in Oklahoma this week next.

says he will no longer put African American beauty products in locked cases.
On Twitter
Trump also asked Seattle officials to “take over” a protest zone without the police, while another statue was shot, this time from Confederate President Jefferson Davis, in Virginia.

Random readings

Another series of police reality TV shows is being broadcast.
Woman who has walked in space reaches the depths of the ocean.
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