Probability of U.S. Recession As Priced Across Asset Classes The S&P 500 is pricing in about a 25% chance of a recession, which is lower than signals from copper prices or the yield curve, but higher than the recession probabilities implied by global equities or high-yield credit markets. Analysts often use the current percentage change…
Risk Appetite Indicator for Different Asset Classes Investors have sharply shifted toward risk aversion due to escalating tariff policies and eroding market visibility. Image: Goldman Sachs Global Investment Research
Asset Class Annualized Real Returns Since 1900 Since 1900, U.S. equities have delivered an annualized real return of 6.7%, highlighting their importance in long-term investment strategies and offering strong returns compared to other asset classes over the past century. Image: J.P. Morgan Asset Management
Asset Class Returns This year’s substantial variation in performance emphasizes the importance of rebalancing portfolios, given that strong gains in some sectors have resulted in elevated valuations that may be prone to pullbacks. Image: J.P. Morgan Asset Management
Asset Classes – Valuation vs. History The current market environment reflects a contrast between relatively cheap commodities and expensive U.S. stock valuations. Image: Topdown Charts
Performance – What Is Likely to Be the Best-Performing Asset Class? Historically, equities have demonstrated significant growth and the potential for attractive returns over the long term. Will equities be the best-performing asset class in 2024? Image: Goldman Sachs Global Investment Research
Cumulative Inflows Across Asset Classes Cash is the flow winner in 2023. Will it serve as the driving force behind the bull markets of 2024? Image: BofA Global Investment Strategy
Asset Class Quilt of Total Returns Despite experiencing a significant selloff, the S&P 500 has managed to maintain its position as the top-performing asset since the start of the year, outperforming other investment options in the market. Image: BofA Global Investment Strategy Click the Image to Enlarge
Hard/Soft/No Landing Pricing Across Asset Classes Investors may allocate cash to bonds in hard landing, a combination of stocks and credit in soft landing, commodities in no landing. Image: BofA Global Investment Strategy
Total U.S. ETF Flows by Asset Class Inflows to U.S. ETFs are very strong this year, despite the bear market. Image: BofA ETF Research
Asset Class Sentiment – Real Estate Real estate asset sentiment is bad, which is contrarian bullish. Image: Topdown Charts