Central Bank Gold Purchases

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

Returns – Magnificent Seven vs. European Banks

Returns – Magnificent Seven vs. European Banks European banks have outperformed the Magnificent Seven since January 2022. This outperformance is particularly noteworthy given the historical dominance of U.S. tech giants in global markets. Image: Goldman Sachs Global Investment Research

Cash Allocation by Non-Bank Investors Globally

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

Performance – Banks vs. S&P 500 Index and Nasdaq 100 Index

Performance – Banks vs. S&P 500 Index and Nasdaq 100 Index In 2024, bank stocks have significantly outperformed major indices like the S&P 500 index and Nasdaq 100 index, driven by optimism regarding potential deregulation that may ease capital rules for banks. Image: Bloomberg

Number of Global Central Bank Rate Cuts

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

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

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

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

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

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

Bank Loan Flows

Bank Loan Flows The largest outflow from bank loan funds since March 2020 can be seen as a negative development and reflects negative investor sentiment. Image: BofA Global Investment Strategy