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BofA Dusts off Stagflation Playbook

The combination of sticky inflation and weakening economic data has some on Wall Street questioning whether we could be entering stagflationary environment for the first time since the 1970s.

By Alexandra Semenova | March 27, 2025 at 01:22 PM
Pedestrians in front of the Bank of America Tower in New York. Photographer: Michael Nagle/Bloomberg.

As “stagflation” makes its way back into the lexicon of the Wall Street crowd, strategists at Bank of America Corp. (BofA) have a blueprint to navigate the bleak economic landscape.

Ultimately, it’s fairly straightforward, according to Savita Subramanian, BofA’s head of U.S. equity and quantitative strategy: Stick with companies with solid fundamentals capable of churning out a steady stream of profits, as well as those that pay cash dividends. They’re the safest bets, she said in a note dated last Friday, if stagflation—a combination of slowing economic growth and accelerating inflation—does take hold.

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