Head of U.S. equity and quantitative strategy at Bank of America, Savita Subramanian offered her best strategy for navigating financial markets that have seemed topsy-turvy in recent weeks as the U.S. economy attempts to mount a sustained recovery from COVID-19.
“I think it is really easy to navigate these markets — and I’m going to tell you how,” Subramanian said on CNBC Wednesday afternoon, following a closely watched rate decision by the Federal Reserve.
The BofA strategist said the Fed has created an environment in which assets boasting inflation-protected yields are the most desirable for investors within equities.
She pointed to small-capitalization stocks as an area where investors could identify such assets, which would benefit from a solid U.S. economic recovery and offer consistent yields at a comparatively attractive price.
She said that small-caps are trading at a lower valuation compared…