Bullish Outlook: Savita Subramanian Debunks Stock Market Misconceptions

Part 1 of 2
American investors have had a love-hate relationship with stocks since their early days of trading under a buttonwood tree on Wall Street in 1792. However, recent setbacks, including a challenging year for equities in 2022 and rising yields on fixed-income investments, have led to a cooling of investor sentiment. We welcome back Savita Subramanian, an influential strategist serving as the Head of U.S. Equity and Quantitative Strategy at BofA Global Research. She challenges the prevailing negative perception of stocks and presents research-backed evidence of their value as long-term investments.
Subramanian, recognized as a top-ranked analyst by Institutional Investor for the last ten years and featured on Barron's list of the 100 Most Influential Women in U.S. Finance for three consecutive years, her expertise is highly regarded in the industry.
In part two of our interview with Subramanian, she sheds light on the significant market trends and explains why stocks should be considered for long-term ownership. Explore her insights and gain a deeper understanding of the enduring value that stocks can bring to your investment portfolio.
#stockmarket #investingstrategy
00:00 Intro
00:33 Introduction
02:06 Interview with Savita Subramanian
22:41 One Investment
24:20 Action Point
WEALTHTRACK #1948 broadcast on April 26, 2023
More info: wealthtrack.com/winning-inves...

[@TheChinaPlay]

Thank you for posting episodes on KZbin! It's helpful because it must be at least 7 years since I caught an episode on PBS.

[@joannemeeks745]

Your interviews are always a home run. ⚾️

[@ryantinney]

Wonderful guest.

[@robertp5123]

Curious to know what are examples that Savita talks about the “quintile two dividend payers”. Is it possible to get a list of the ones she recommends?

[@steveagnew3385]

Yes... just use a stock screener like Morningstar, Schwab, or JPMC. In Morningstar, there are 7285 stocks >0.1% div and 1457 in the 2nd q, At 80% is 7.1% like AT&T and at 60% is like KKPNY at 4.4%.

[@edmundlively8137]

Thanks yet again, Consuelo Mack!

[@mqser]

Really valuable stuff. Thank you

[@davidherman1041]

How many carbon credits do you have to buy to pretend it didn't happen?

[@nsnandra]

Hello, where can you find a 2nd quintile dividend etf :)?

[@ShamileII]

Wow, Sativa was really great to listen to. I'm already a dividend investor and buy exactly the 2nd quintile....just didn't know it was called that. I've known it as the "Geraldine Weiss strategy" ....she was the most successful female investor.

[@janesmith506]

Thanks for posting. I don’t know either strategy; this may be something I can be comfortable with.

[@dalemacrae7902]

Absolutely great show, Thanku for your wducation

[@robertp5123]

Savita’s advice is excellent……stay invested!!! This is the best strategy. The great John “Jack” Bogle preached the same theme. Never time the market and “Stay the Course “. Mr Bogle would say that their is no magic trick. Staying invested and not missing any market upturns will make you very profitable.

[@tastypymp1287]

This is exactly what the Financial Asset Industrial Complex needs you to think.

[@roblawrence3795]

But you have to sell sometime if you want to enjoy your profits. 😂

[@nrs6956]

@@roblawrence3795 Your circumstances will dictate when to sell. Bottom line save and be frugal.

[@danielmcpartlin6526]

⁠right but who would have predicted the rise in stocks this spring. You can’t use logic or picking “good” companies. The market is a Ponzi scheme supported by 401k contributions

[@fredatlas4396]

​@@roblawrence3795 only sell when your investments are up, showing a good profit. You only lose money if you sell @ a loss

[@Amit-rz6lq]

Very useful episode

[@massageandunwind8787]

Thank you for the content

[@WhiteCloud746]

make Savita a regular guest

[@siedimani8770]

Great program!

[@user-pz3dh5vx1z]

Love her information and advice.

[@steveagnew3385]

I enjoyed the episode... however, Buffet the stay your course guru is now holding 13% cash from taking Berk profits. So Buffet also recommends taking profits and that means taking profits by selling when appropriate like in rallies, especially bubble rallies like today's fiveLcaps bubble. Then, you also need a buying strategy to reinvest your cash when appropriate. These retrospective statistical studies are highly biased because every rally/correction cycle is unique and a study can therefore cherry pick whatever answer it needs to keep its investors afraid of their own shadows. The market turns over about 2.5%/day because someone somewhere is making money by selling as well as buying. The gambler's fallacy is that half are making and half are taking by a flip of a coin, but in a growing economy, there are more makers than takers. All portfolios should hold 10-20% cash and so all portfolios should churn by 10-20%/yr just like Buffet, the hold stocks guru...

[@melissastroud]

Compound returns & reinvesting, 17000%...reassures me...

[@shingnosis]

100% right. “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” Don't try to time the market. Dollar cost average. Diversify across all asset classes.

[@roblawrence3795]

The bigger Connie’s hair, the better the episode! 😂

[@Michael-qy1jz]

It Bullish for Bankruptcy Lawyers and those of us who will being buying Asset & Properties Half Price coming up. Lol

[@jimjackson4256]

What would happen if you missed the worst ten days of the decade? Why doesn’t anybody mention that?

[@tastypymp1287]

Nothing. Literally nothing.

[@qake2021]

🤣🤣🤣 that's gambler's mindset 😁😁😁

[@fredatlas4396]

Nothing because no one can actually do that, how on earth would you manage to miss the worst 10 days in the markets of the decade, without a crystal ball, no one has a crystal ball, no one really has psychic powers

[@johnyjsl9219]

Quintile two she is referring to what SCHD invests in

[@johnnyringo1258]

Also VIG. Same expense ratio as SCHD, slightly different sector weighting.

[@brianhollenbeck8633]

😊

[@fredatlas4396]

Why did her voice go all funny when she was asked about index funds. She knows we don't really need actively managed funds that always charge more. Since 2009 the S&P 500 index has beaten Berkshire Hathaway by some margin

[@davidmartin6266]

Stocks will be in sale next week.

[@chamindasilva3191]

This is a big boost for Donald Trump's idea of self-sufficiency and DE globalization🤔

[@fredatlas4396]

That's nothing new, people like John Bogle, Charles Ellis have been telling people market timing is a losing game for yrs , its impossible to time the markets effectively. And again John Bogle has been saying for yrs, buy & hold is the best strategy

[@roconnor01]

'Remaining invested' assumes you have decades ahead of you to weather the ups and downs of the market. What happens if you are already retired. I don't fancy clawing my way back from, for example a 40% decline in equity prices at my age.

[@flamingjune27]

That’s just asset allocation. Having several years of living expenses in short term cash equivalents and off risk assets like bonds let’s your equity portion rebound.

[@tastypymp1287]

​@@flamingjune27 Nope. The OP is correct. You're wrong.

[@johnnyringo1258]

@@tastypymp1287 False. If someone finds themself on the wrong side of market swings in retirement, they have failed to do their due diligence as an investor. Proper allocation is a personal responsibility. In this day and age of readily available information, there is no excuse to be surprised by the market. None.

[@tastypymp1287]

@@johnnyringo1258 Absolute tosh. Totally false. You can do as much due diligence as you like but nothing can prepare you for the unexpected black swan tail risk. There is always risk, there is always an element of luck and fortune. And as one gets older then the opportunity to recover from such events beyond our control decays. The OP is completely correct.

[@fredatlas4396]

​@@tastypymp1287 Sorry but you are wrong. You need to be properly diversified across regions, sectors, asset classes. And have several yrs or more if possible of living expences in cash, plus some bonds, not 100% in equities in retirement. Then if things go tits up you don't touch the part of your portfolio that's gone down significantly, just live off the cash or maybe bonds if they are doing OK or even up in an equity crash, until your portfolio recovers. What don't you understand about that

[@qake2021]

👍👍👍😃😃😃😃😃👏👏👏

[@qake2021]

👌👌👌👌👍👌👌👌👌✌️

[@michaelswami]

I like her, even though she drinks the carbon kool aid.

[@johnnyringo1258]

Agreed. She's no dummy, but I see a lack of conviction in her mannerisms. She's just trying to ride the wave and make a career as a millennial investment advisor.

[@blackfiree91]

So not important information

[@tomgee2719]

Guess I'll skip this week, why would I listen to someone who promotes ESG. Zero creditability.

[@tastypymp1287]

Thanks for the warning, I'll not bother either.

[@qake2021]

👍👍👍😃😃😃😃😃👏👏👏