Returns – Magnificent Seven vs. European Banks Since January 2022, European banks have outperformed U.S. mega-cap tech stocks—a notable achievement considering the longstanding dominance of American tech giants in global markets. Image: Goldman Sachs Global Investment Research
Monthly Flow of G4 Central Bank Asset Purchases Global central banks are continuing to reduce their asset holdings at a robust pace, primarily through balance sheet runoff and measured non-reinvestment of maturing securities. Image: Deutsche Bank
Central Bank and Institutional Demand for Gold Goldman Sachs expects ongoing strong demand from central banks—especially those in emerging markets—to continue boosting gold prices through 2025. Central bank gold purchases have risen fivefold since 2022. Image: Goldman Sachs Global Investment Research
Central Bank Gold Purchases The freezing of Russia’s central bank assets has had a profound impact on global financial strategies, driving central banks to significantly increase their gold holdings as a safeguard against economic and geopolitical risks. Image: Goldman Sachs Global Investment Research
Cash Allocation by Non-Bank Investors Globally While cash was once considered king, non-bank investors globally have significantly reduced their cash allocations, reaching levels not seen since at least 1999. Image: J.P. Morgan
Number of Global Central Bank Rate Cuts Central banks globally are responding to slowing inflation and the need to stimulate economic growth by cutting interest rates at an unprecedented pace since the COVID-19 pandemic. Image: BofA Global Investment Strategy
Central Bank Gold Holdings Despite a significant gold price rally, private investors have largely been absent, especially compared to the aggressive purchases made by central banks. Image: Alpine Macro
5-Year U.S. Treasury Yield vs. Bank Stocks Correlation The combination of higher bond yields and rising bank stocks is often often viewed as a sign of a bullish market environment. Image: BofA Global Investment Strategy
Aggregate G6 Central Bank Balance Sheet The aggregate G6 central bank balance sheet is expected to continue decreasing in 2024 and 2025 as central banks unwind their pandemic-era asset purchase programs through quantitative tightening measures. Image: BofA Global Research
Implied Equity Allocation by Non-Bank Investors Globally Despite concerns about potential economic slowdowns, investors are currently maintaining an overweight position in global equities, suggesting a positive outlook for stock markets. Image: J.P. Morgan
Central Bank Policy Rate Changes Goldman Sachs has revised its forecast regarding interest rate policies, suggesting significant declines in policy rates across most economies over the next 12 months, driven by easing inflation and slowing economic growth. Image: Goldman Sachs Global Investment Research