Gold Investment Physical Ex-Central Banks and Indices, of Equity Markets How much gold should an investor have in his investment portfolio? BofA suggests an optimized allocation to gold of approximately 4.5%. Image: BofA Global Research
Change in G4 Central Bank Balance Sheets (% G4 GDP, 12M Change) G4 central bank balance sheets are expected to expand by 28% of GDP by year-end 2021. Image: Morgan Stanley Research
Central Bank Balance Sheets as % of GDP The Federal Reserve appears as the central bank with the highest room to increase its balance sheet. Image: Deutsche Bank
Performance – FANG+ Index vs. S&P 500 and U.S. Banks The FANG+ index climbs higher, while banks slump again over fears of job losses and bad loans. Image: J.P. Morgan
Performance – S&P 500 Tech vs. S&P 500 Banks Total Return Relative Tech stocks have weathered the coronavirus panic. The outperformance of tech vs. banks is the biggest since the dotcom bubble and the Global Financial Crisis. Image: BofA Global Investment Strategy
Relative Performance of Bank Shares vs. Index and 5-Year Treasury Yield This chart suggests the relationship between interest rates and relative bank performance. Image: BofA Global Investment Strategy
Global M2 (ex-China) and Cash Allocation by Non-Bank Investors Globally The elevated cash holdings suggest a strong support for equities and bonds. Image: J.P. Morgan
Gold and G4 Central Bank Balance Sheet Chart suggesting that G4 central bank balance sheet expansion is positive for gold. Image: J.P. Morgan
Commercial Bank Loan Delinquency Rate Chart suggesting that the commercial bank loan delinquency rate is expected to rise Image: Deutsche Bank Global Research
Growth in Gold Price and Central Bank Balance Sheets Chart suggesting that the growth of central bank balance sheets should drive gold prices higher. Image: BofA Global Research