Valuation – MSCI World 12-Month Forward PE With valuations at 19.7 forward P/E, global stocks look expensive — not dot‑com crazy, but not exactly a bargain either. Image: Goldman Sachs Global Investment Research
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
MSCI World Sector/Style Valuations Elevated P/E ratios in most MSCI World sectors—when compared to historical averages—indicate strong investor optimism fueled by positive earnings expectations and favorable macroeconomic conditions. Image: Goldman Sachs Global Investment Research
Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM, MSCI World Rising analysts’ sentiment on S&P 500 earnings reflects strong corporate results, positive surprises, and a favorable macroeconomic backdrop, all pointing to potential near-term market gains. Image: Goldman Sachs Global Investment Research
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 Performance vs. U.S. Dollar Index Typically, the relationship between the U.S. dollar’s strength and global equities is significant. A weaker U.S. dollar tends to support global equities, while a stronger dollar generally puts downward pressure on them. Image: J.P. Morgan
MSCI World EPS The decline in MSCI AC World EPS consensus estimates for 2025 reflects a cautious stance among analysts as they navigate an uncertain economic landscape marked by slower growth and sector-specific challenges. Image: Goldman Sachs Global Investment Research
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
MSCI World Value vs. Growth Given the current market dynamics, will the outperformance of growth stocks over value stocks be reversed in the future, with value stocks potentially taking the lead? Image: Goldman Sachs Global Investment Research