Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM, MSCI World Analysts’ enthusiasm for S&P 500 earnings has eased slightly in recent weeks, but expectations still sit at relatively high levels as confidence in the full-year outlook persists. Image: Goldman Sachs Global Investment Research
MSCI AC World EPS Analysts are steadily raising MSCI AC World EPS estimates for 2026 and 2027, betting the AI and tech surge will boost margins and profits instead of fueling another round of excess spending. Image: Goldman Sachs Global Investment Research
Valuations – 12-Month Forward P/E Ranges (MSCI Regions) Valuations in U.S. and global equities remain stretched, with earnings momentum doing most of the work. As long as companies keep posting solid results, investors seem willing to live with the premium. Image: Goldman Sachs Global Investment Research
MSCI World Sector/Style Valuations Valuations are stretched across sectors and styles, leaving investors with almost no room for error. That is what makes this market so tricky. If sentiment turns, there is not much to catch the fall. Image: Goldman Sachs Global Investment Research
Valuation – MSCI World 12-Month Forward PE With global equities trading at 18.5 times forward earnings, valuations look stretched by historical standards. Not a bubble, but far from cheap. Image: Goldman Sachs Global Investment Research
Valuations – 12-Month Forward P/E Multiple – MSCI Regions, STOXX 600 and S&P 500 Markets may have pulled back, but valuations are still elevated worldwide. Strong earnings are doing the work, and as long as that continues, multiples are unlikely to crack. Image: Goldman Sachs Global Investment Research
Valuations – MSCI Index Market Capitalization Relative to M2 U.S. market capitalization has rocketed since late 2022, pushing valuations to levels that M2 growth can’t justify on its own. There’s more at play now than just liquidity. Image: Gavekal, Macrobond
MSCI Emerging Markets Index Emerging markets are back in play, lifted by a softer U.S. dollar, easing global rates, and fresh reforms from Beijing to New Delhi. The rally’s staying power, though, hinges on how long the dollar stays soft. Image: Bloomberg
Valuation Ranges of MSCI World Styles Indices Across markets and styles, valuations remain lofty amid AI-driven optimism and market concentration, forcing investors to pick their spots carefully. Image: Goldman Sachs Global Investment Research
MSCI World Performance vs. U.S. Dollar Index The link between the US dollar and global equities is often decisive. A softer dollar usually lifts stock markets worldwide, while a firmer one tends to weigh them down. Image: J.P. Morgan
Global Stocks – MSCI AC World Local Index Citigroup strategists are betting on a 10% rise in global equities this year, backed by a gentle economic slowdown, stronger earnings forecasts, and fresh AI tailwinds. Image: Bloomberg