There are pockets of the market that look a lot more rational now, says BofA's Savita Subramanian

• Market has experienced a 'healthier reset' in 'brothier areas' like tech, semis, software, and hardware, driven by rising earnings and compressed multiples.
• Recommends large-cap value stocks, including tech, as a defensive play against potential S&P 500 downside, suggesting a 'set it and forget it' approach.
• BofA's models are suggesting a higher year-end target for the market, despite concerns about complacency and reduced buybacks.

Savita Subramanian of BofA Securities discusses the current market landscape, noting a 'healthier reset' in tech due to multiple compression from rising earnings and falling prices. She expresses optimism for the market but advises against complacency, recommending large-cap value stocks, including tech, as a protective strategy for investors heading into a seasonally turbulent period.