BofA’s Subramanian: ‘The S&P 500 is trading like it’s the new risk-free rate'

Explore why S&P 500 valuations are soaring, what’s driving the new market normal, and how investors can navigate today’s economic landscape.
Financial Advisor

Sky-High S&P 500 Signals 'New Normal,' Not Bubble, BofA Says

“The index has changed significantly from the 80s, 90s and 2000s,” Subramanian, BofA’s head of equity and quantitative strategy, wrote. “Perhaps we should anchor to today’s multiples as the new normal ...

Nope, sorry, the S&P 500 is not the new risk-free rate

Yes. Yes, it would absolutely be a complete stretch. The annualised volatility of the S&P’s daily returns over the past five years is around 17 per cent, around three times the volatility of US ...

S&P 500: Buy Put Spreads Before The Tide Turns

U.S. equities appear expensive on multiple long-horizon gauges. Click here for more information on Market Outlook.