Valuation – MSCI U.S. Forward 12-Month Price/Earnings Ratio vs. 10-Year U.S. Treasury Real Yield While rising real yields have historically been associated with a decrease in stock market performance, the U.S. equity market has showcased its resilience by delivering impressive returns this year. Image: Morgan Stanley Wealth Management
Market Breadth – Percentage of MSCI AC World Stocks Above 200-Day Moving Average Global stocks are currently experiencing bad breadth, which can be a cause for concern as it indicates a lack of broad market participation. Image: BofA Predictive Analytics
Valuation – MSCI U.S. 12-Month Forward P/E Relative to MSCI World Ex. U.S. There is a prevailing sentiment suggesting that U.S. equity valuations are not currently appealing. Image: J.P. Morgan
Seasonality Trends in MSCI AC World Index (Global Equities) The previously challenging seasonality headwinds faced by global equities are now turning into favorable tailwinds, potentially boosting market performance as we enter the final quarter. Image: BofA Predictive Analytics
Valuation – 12-Month Forward P/E Ranges (MSCI Regions) The current valuations of the U.S. stock market are significantly higher than the historical average. Image: Goldman Sachs Global Investment Research
Performance – Global Equities Equal Weighted (MSCI ACWI Equal-Weighted Index) Since February 2020, the MSCI ACWI Equal-Weighted Index has done virtually nothing. Image: BofA Global Investment Strategy
FMS Investors – Net % Expecting Stronger Economy vs. MSCI ACWI Only 15% of FMS investors expect stronger economic growth. Image: BofA Global Fund Manager Survey
Valuation – Price-to-Book Ratio – MSCI Japan Index vs MSCI ACWI ex Japan Index Warren Buffett’s positive view on Japanese stocks has raised the question of whether it is the right time to consider investing in them. Image: Morgan Stanley Wealth Management
Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM, MSCI World Earnings sentiment is improving, which is good news. Image: Goldman Sachs Global Investment Research
MSCI All Countries vs. Median Profit Margin All Countries Will global corporate profitability improve in the coming quarters? Image: Topdown Charts