Bank of America (BofA) equity strategist Savita Subramanian warned that 70% of her bear‑market signposts have now been triggered, a level not seen before previous market peaks since 1990. At the same time, RBC Capital Markets’ Canadian Energy, Power & Infrastructure Conference highlighted soaring data‑center demand that is lifting utilities such as Capital Power and TransAlta.

Subramanian flags 70% of bear‑market signposts

According to BofA, Subramanian’s latest report shows the proportion of her bearish indicators rising from 50% last month to 70% today, matching the average trigger rate before every market peak since 1990. she points to two fresh red flags in May: long‑term S&P 500 growth expectations that are “way above normaal,” and a 2.5% monthly outperformance of low‑P/E stocks over high‑P/E peers. The analyst argues that this outperformance signals fragile market leadership and excess speculation, especially among megacap technology names.

Tech valuation gap hits February 2000 levels

The report notes that U.S. equities are expensive on 17 of 20 metrics tracked, with the Shiller P/E, price‑to‑book and S&P 500‑to‑GDP ratios more than double historical averages. Most striking is the performance dispersion within technology, which has widened to levels last seen in February 2000, just before the first tech bubble burst. The top quintile of tech stocks outperformed the bottom quintile by 120 percentage points over the past three months, indicating that the rally is no longer “lifting all boats.”

Data‑center capex pressures hyperscalers and fuels utility rally

RBC’s EPIC conference, as recapped by analyst Maurice Choy, underscored massive capital expenditure from the data‑center arms race. This spending is squeezing hyperscaler profit margins and weakening balance sheets, while simultaneously creating a structural demand shift for electricity. forward electricity prices have already risen, benefitting Canadian utilities such as Capital Power and TransAlta, which are positioned to supply the power‑hungry data‑center projects.

RBC EPIC conference spotlights Capital Power and TransAlta

Choy highlighted that power‑supply agreements in Alberta are being finalized and that data‑center construction is beginning, making forward electricity contracts a key growth driver. Outside Alberta, Brookfield Renewable Partners LP is set to profit as a clean‑energy supplier, while Emera Inc. and Fortis Inc. are praised for their defensive qualities. The consensus among conference attendees was that utilities are the most attractive S&P 500 sector, echoing BofA’s view of energy as the top pick.

Which low‑P/E stocks are driving the outperformance?

The source does not name the specific low‑P/E stocks that have outperformed high‑P/E peers, leaving investors to guess which sectors are providing the cushion . Moreover, Subramanian’s report does not quantify how much of the 2.5% outperformance is attributable to defensive industries versus cyclical ones, a gap that could affect portfolio tilts.