Performance – S&P 500 Index – MSCI World Excluding United States Index With significant growth in the U.S. economy and favorable market conditions, the S&P 500 is set to record its largest gain relative to global markets since 1997. Image: Bloomberg
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
Market – Geographical Breakdown of MSCI World Index Constituents The combined market capitalization of the Magnificent Seven would make it the second-largest country stock exchange globally. This would surpass the total value of many thriving economies. Image: BofA Global Research
Valuation – MSCI World 12-Month Forward PE Compared to the 20-year median, the current global stock market valuation appears relatively high, with a 12-month forward P/E ratio of 17.8. Image: Goldman Sachs Global Investment Research
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
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
South Korea Exports vs. MSCI World EPS South Korea’s exports tend to lead global earnings. Image: J.P. Morgan
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
Cumulative Performance of MSCI World Around Hiking Cycles Historically, global equity markets have performed well during hiking cycles. Image: J.P. Morgan