Bank of America Corp. strategist Savita Subramanian is taking "flak" for maintaining the lowest year-end S&P 500 target on Wall Street at 7,100, implying a 7.5% decline from recent levels. As head of US equity and quantitative strategy, Subramanian warns that rising leverage from the artificial intelligence build-out and unusually tight credit spreads signal potential credit cycle deterioration. She cautions investors against staying in cash due to low real returns, instead favoring large-cap value stocks as a "beautiful story." Her bearish stance stands out in a Bloomberg survey of more than 20 strategists.

Subramanian discussed her views on "Bloomberg Surveillance," emphasizing that being the biggest bear can be tough but necessary given current market dynamics. The call reflects concerns about AI-driven leverage and credit market signals rather than pure equity valuation.