Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM Analysts have trimmed their S&P 500 earnings outlook in recent weeks, but expectations still look elevated as confidence in the full-year picture holds up. 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
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
Three-Year Total Returns of MSCI World Sector Indexes Tech and Communication Services sectors have dominated global equity returns in recent years, lifted by a surge in AI-driven innovation across hardware, software, and digital infrastructure. Image: Gavekal, Macrobond
Returns – Gold vs. S&P 500 vs. MSCI World $4,000 gold isn’t just a headline—it’s the latest move in a powerhouse rally that has left equities in the dust since the millennium. Image: Bloomberg
S&P 500/MSCI World and U.S. Dollar Trade-Weighted Index The renewed relative strength and attractiveness of U.S. assets amid global uncertainty and monetary policy differentials have played a central role in driving the U.S. dollar’s recent rebound Image: Goldman Sachs Global Investment Research
Return on Equity (ROE) : S&P 500 vs. MSCI World ex. U.S. U.S. stocks have significantly outperformed their global peers in recent years, driven by the superior return-on-equity of American companies—a key factor reinforcing the structural advantages of the U.S. market. Image: Goldman Sachs Global Investment Research
DXY U.S. Dollar Index vs. Nasdaq Composite / MSCI World Value Over the past two years, U.S. growth stocks—known for their sensitivity to currency fluctuations—have exhibited a strong correlation with the U.S. dollar. Image: Gavekal, Macrobond
MSCI World Fwd PE and EPS Revisions Downward revisions in global EPS raise concerns, suggesting that the global economic landscape is precarious, prompting central banks to adopt more aggressive strategies to stimulate growth. Image: J.P. Morgan