Statistically the market is still 'expensive': Savita Subramanian

• S&P 500 is overvalued on 17 out of 20 metrics, with strong earnings revisions concentrated in Energy and Tech.
• Muted stock reactions to strong Q1 earnings indicate good news is already priced in, and investors are fully invested.
• Concerns about consumer spending due to higher oil prices and a potential influx of large IPOs creating a 'supply drop' for growth equity.

Savita Subramanian of BofA Securities expresses cautious optimism, highlighting that the S&P 500 remains statistically expensive on most valuation metrics. While strong earnings revisions are observed, they are concentrated in a few sectors like Energy and Tech. She notes muted market reactions to strong Q1 earnings and concerns about consumer spending due to rising oil prices, suggesting a potential 'supply drop' from upcoming IPOs could further impact market dynamics.