Forward P/E Ratio and Subsequent 5-Year Annualized Returns Considering the valuation of the U.S. stock market, investors may need to adjust their expectations for equity returns, which are likely to be lower in the coming five years. Image: J.P. Morgan Asset Management
25-Year Cumulative Return of S&P 500 over Gold Warren Buffett has a skeptical view of gold as an investment, but apparently, gold didn’t get the memo and has been outperforming the S&P 500 over the past 25 years! Image: Deutsche Bank
5-Year U.S. Treasury Yield vs. Bank Stocks Correlation The combination of higher bond yields and rising bank stocks is often often viewed as a sign of a bullish market environment. Image: BofA Global Investment Strategy
Inflation – U.S. 5-Year, 5-Year Forward Breakeven Rate U.S. bond market expectations for inflation are rising again, which is not good news. Image: The Daily Shot
Gold Price vs. U.S. 5-Year TIPS Yield Generally, when the U.S. 5-year TIPS yield goes up, gold tends to go down. Image: The Daily Shot
5-Year Rolling Correlation Between S&P 500 TTM EPS YoY vs. China Nominal GDP and U.S. Nominal GDP China’s economic growth slowdown suggests trouble ahead for the S&P 500. Image: BofA US Equity & Quant Strategy
Rates – Short Duration vs. Long Duration Indexed Relative to Basket Return and 5-Year, 5-Year Forward Real U.S. Treasury Yield Short vs. long duration tends to track the path of U.S. rates. Image: Goldman Sachs Global Investment Research
U.S. 5-Year/5-Year Forward TIPS Breakeven Inflation Rate and Fed’s Target Zone Is U.S. inflation still a risk? Image: BCA Research
S&P 500 Pure Value/Pure Growth Index and 5-Year U.S. Treasury Breakeven Rate The 5-year U.S. Treasury breakeven rate tends to drive the rotation from growth stocks to value stocks. Image: Morgan Stanley Wealth Management
U.S. Inflation Expectations – U.S. 5-Year Breakeven and U.S. Core PCE Price Index Will inflation expectations fall back to lower levels? Image: Bloomberg
Core PCE Inflation and 5-Year, 5-Year Forward Breakeven Inflation Rate Are inflation expectations too high? Image: Alpine Macro