Savita Subramanian, senior equity strategist at BofA Securities, warns investors that holding cash is eroding their purchasing power in a persistent inflation environment. She recommends large-cap value stocks, which she calls a « beautiful story, » arguing that equities, particularly value-oriented ones, better preserve purchasing power than money market funds or short-term treasuries. According to BofA’s September 2025 fund manager survey, cash allocations stand at 3.3%, near record lows, indicating that institutional investors have already moved out of cash. Subramanian also highlights the boom in corporate capital expenditure on infrastructure and manufacturing capacity, which supports earnings in the value segment without relying on multiple expansion.
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