Allocation to Cash and Recession Probability

Allocation to Cash and Recession Probability This chart shows the correlation between allocation to cash and the NY Fed 12-month ahead recession probability indicator. Picture source: Barclays Research

Equity Volatility vs. Equity Allocation

Equity Volatility vs. Equity Allocation As equity volatility rises (inverted on the chart), equity allocations come down. You may alos like “The Yield Curve Leads VIX (Volatility) by Three Years.” Picture Source: Deutsche Bank

Investor Allocation by Region in the U.S.

Investor Allocation by Region in the U.S. This chart is a good example of investment bias and shows the likelihood of owning stocks in an industry vs. national average. Picture Source: J.P. Morgan Asset Management

Mutual Fund Flows – Asset Allocation Funds since 2000

Mutual Fund Flows – Asset Allocation Funds since 2000 Dynamic/flexible and balanced funds saw significant outflows since 2018. It is obvious that many investors don’t have a long-term view. Picture source: Topdown Charts

Correlation Matrix

Correlation Matrix This grid shows the correlation between different asset classes. It is very useful for asset allocation. Picture source: Fidelity Investments

Consensus EPS Growth Expectations

Consensus EPS Growth Expectations Corporate earnings estimates get more optimistic for 2020. Picture source: Deutsche Bank Asset Allocation

Cross-Asset Correlation Matrix

Cross-Asset Correlation Matrix This grid showing the correlation between different asset classes, is useful for asset allocation. Picture source: Goldman Sachs Global Investment Research