BofA's Savita Subramanian: We are in a really good spot in terms of corporate earnings

• The U.S. economy is running at a very healthy clip with CapEx taking off, driven by hyper-scalers.
• Corporate earnings are significantly outperforming, tracking around 20% growth this year, well above the initial 15% consensus.
• Recommends being more bullish on cyclical companies that benefit from GDP growth, such as industrials, energy, materials, semiconductors, machinery, engineering, construction, and metals.
• Energy companies are viewed as undervalued, having started to outperform before geopolitical events, and are focused on cash return and dividends due to a 'power bottleneck'.

Savita Subramanian of BofA Securities expresses a bullish outlook on the U.S. market, highlighting a healthy economy, robust capital expenditure, and 'gangbusters' corporate earnings. She recommends investing in cyclical sectors that benefit from strong nominal GDP growth, as they are currently undervalued.