The US economy continues to be a source of optimism.

The US economy continues to be a reason for optimism, according to statements by Savita Subramanian, head of US equity and quantitative strategy at Bank of America Corp. Despite concerns about a possible slowdown due to high interest rates that could persist for longer, Subramanian assures that the current situation is quite encouraging and the outlook is favorable for US stocks. Although some economic indicators have shown softening, such as adjustments in the labor market and retail sales, most of these are normalizing from unsustainably high levels, which does not necessarily point to an economic slowdown, but rather to a necessary adjustment process. According to Subramanian, the probability of a recession or stagflation, which is when inflation remains high while the economy slows down, is 10% or less, supporting her optimistic view. The analyst points out that many investors are too focused on the negatives due to past experiences, such as the covid-19 pandemic and the global financial crisis, which have conditioned their current perception. Subramanian compares the current situation to the story of Goldilocks, indicating that most of the time things are neither too good nor too bad, but rather balanced. The recently published consumer price report showed a lower-than-expected increase in May, causing US stock markets to continue their upward trend. Both the S&P 500 index and the Nasdaq 100 recorded gains of over 1% after the release of this data. Investors are now awaiting the Federal Reserve's decision on interest rates and comments from Jerome Powell, Fed chairman. Subramanian reiterated BofA's year-end target for the S&P 500, which is 5,400, slightly below the current level. Despite maintaining a constructive view on US equities, the analyst mentions that extremely bearish expectations are no longer as favorable as before, and that the recommendation to allocate funds to stocks reached high levels in May, indicating increased interest from investors. Regarding the stock market, Subramanian and her team are convinced of the value of large-cap companies, cyclical stocks, and dividends. They have recently advised clients to opt for active strategies, especially in a context where the S&P 500 has reached historic highs. This suggests that, despite the current favorable conditions, it is important to maintain a strategic and active view on investments. In summary, the current economic situation in the United States appears to be positive, with indicators pointing to a gradual normalization rather than an imminent slowdown. Although there are uncertainties, such as Federal Reserve decisions and inflation developments, the optimistic outlook of analysts like Subramanian supports the idea that US stocks remain an attractive option for investors.