Global Stocks (MSCI ACWI ex-U.S.) – Global Equity Prices Excluding U.S. Stocks Global stocks ex-U.S. remain below pre-Global Financial Crisis highs. Image: BofA Global Investment Strategy
Seasonality – MSCI ACWI (Global Equities) Historically, March and April tend to be strong months for global equities. Image: Morgan Stanley Research
Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM, MSCI World Earnings sentiment remains positive. Image: Goldman Sachs Global Investment Research
Performance – S&P 500 vs. MSCI World vs. MSCI World Ex-US Can the S&P 500 continue to outperform global equity markets over the next 10 years? Image: Financial Times
Valuation – MSCI ACWI World Market Capitalization to Global GDP Ratio The MSCI ACWI World Market Capitalization to GDP ratio is at record high. Image: Morgan Stanley Research
MSCI World and World Technology 12-Month Forward Earnings Yield Minus U.S. 10-Year Bond Yield Over the last 4 years, the MSCI World tended to decline when the yield gap was close to 2%. Image: Societe Generale Cross Asset Research
Returns – G7 + China Free Liquidity and MSCI ACWI (Leading Indicator) Global free liquidity continues to rise. When global free liquidity is above 10%, equity markets tend to perform well: the average next 12-month return is 23.4% with a hit ratio of 100% since 2009. Image: BofA Global Research
Major Economies Central Banks Total Assets and MSCI ACWI Central bank balance sheet expansion is expected to push equities higher. Image: BofA Global Research
Valuation – Cyclical Adjusted P/E Ratio – MSCI U.S. vs. MSCI World Ex-U.S. Are global equities ex-U.S. a bargain? Image: Gavekal, Macrobond
Bear Market – MSCI IMI All-Cap Country Indexes Outside the United States, will the 20-year bear market come to an end? Image: Gavekal, Macrobond