BofA's Savita Subramanian on The New S&P 500: AI-Driven and Asset-Light | #567

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 24 January 2025

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

My guest today is Savita Subramanian, Bank of America’s Head of U.S. Equity Strategy & U.S. Quantitative Strategy. Barron’s named Savita as one of the 100 Most Influential Women in U.S. Finance. In today’s episode, we cover the key trends shaping markets as we start 2025. Savita discusses the evolution of the S&P 500 over the past 50 years and why that leads her to be more comfortable with higher valuations today. Then she explains why productivity gains could drive the next bull market and the surprising resilience of corporate margins despite inflation volatility. Plus, Savita weighs in on the future of small, mid, and large caps and why she favors selective stock picking over buying the index. (0:00) Intro (0:34) Sponsor: Farmland LP (2:02) The evolution of the S&P 500 (5:13) Does the market deserve a higher valuation? (11:02) 2025 market outlook (14:34) Corporate margin expansion and efficiency (19:43) Fixed income alternatives and large cap value stocks (26:03) IPO trends and private markets (32:23) Reshoring and US infrastructure investment (38:12) Market shift to focus on total return (51:17) Old economy stocks and global market opportunities (58:35) Most memorable investment ----- For detailed show notes, click here ----- Sponsor: Farmland LP is one of the largest investment funds in the US focused on converting chemical-based conventional farmland to organic, sustainably-managed farmland using a value-add commercial real estate strategy in the agriculture sector. ----- Follow Meb on X, LinkedIn and YouTube To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com Follow The Idea Farm: X | LinkedIn | Instagram | TikTok ----- Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com ----- Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. ----- Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Medfavor show, where the focus is on helping you grow and preserve your wealth.
0:10.9	Join us as we discuss the craft of investing and uncover new and profitable ideas, all to help you grow wealthier and wiser.
0:16.9	Better investing starts here.
0:19.5	Metfabor is the co-founder and chief investment officer at Cambria Investment Management.
0:22.5	Did it industry regulations, he will not discuss any of Cambria's funds on this podcast.
0:25.8	All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinion of Cambria investment management or its affiliates.
0:31.2	For more information, visit cambrain investments.com.
0:34.7	The market for organic food approached 70 billion in 2023 is expected to reach 144 billion by 2032.
0:43.2	Still, did you know, less than 1% of U.S. farmland is certified organic.
0:48.9	Farmland LP is one of the largest investment funds in the United States focused on the organic market
0:54.0	and seeks to take
0:55.1	advantage of this supply, demand, and balance. Their value-add strategy of converting conventional
1:00.0	farmland into organic and regenerative farmland is designed to deliver returns that are
1:04.6	uncorrelated with the stock market, act as an inflation hedge, and increase profitability,
1:09.8	raising rents from $350 to $750 per acre.
1:13.6	Their third regenerative farmland fund is now open to accredited investors but will close
1:18.5	in Q2 2025. In today's world of high inflation, volatile markets, and uncertainty, consider
1:24.1	adding farmland to diversify your investment portfolio. To learn more, visit the Farmland LP link on my podcast page
1:30.6	or email their investor relations team at farmlandlp.com.
1:35.2	Don't forget to mention you heard it here on the Meb Faber Show.
1:39.6	Welcome back, everybody. We got an awesome show today.
1:43.0	Our guest is Savita Subramanian.
	...

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