Savita Subramanian of Bank of America Securities said she is the most bullish on stocks in at least a decade. According to the firm’s head of U.S. equity and quantitative strategy, the macro backdrop is re-energizing key groups that have been overshadowed by big tech gains and excitement around artificial intelligence. “We’re in a position where old economy companies have learned how to survive without capital and actually look pretty interesting at these levels,” she said Tuesday on CNBC’s “Fast Money.” Most of the S&P 500 is actually generating free cash flow.” Subramanian said the market is more rational than it has been in a decade. “We’ve finally done this zero rate experiment. We know what the Fed’s going to do,” she said. “We’re off the zero bound. We have five percentage points of freedom to get out of the next recession. Real rates are no longer negative.” Investors, however, may want to manage their expectations. “In terms of (market) returns over the next decade, maybe they’re a little bit lower than what we’re enjoying. But I think they’re driven by the right things: productivity (and) efficiency,” she said. “Companies are doing all the right things.” Last month, Subramanian raised his year-end target for the S&P 500 by 7.5 percent to 4,300 — a range as high as 4,600. On Tuesday, the index closed 0.47% lower at 4,388.71. According to CNBC market research, three strategists have higher targets than Subramanian. “There are better times to get into the market,” she said. “Back in 2011, we were really bullish because the market was very cheap. Today, it’s not that cheap. But I think there are parts of the S&P 500 that look very attractive.” She argued that large-cap stocks Investment opportunities in the S&P 500 are currently being overshadowed. “If you take out the 50 largest stocks, the top 50 in the S&P 500 is trading at 15 times trailing earnings, which is actually relatively low,” Subramanian said. “There are value opportunities, but they are now overshadowed by this AI bubble.” Disclaimer