Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total The top 10 stocks in the S&P 500 have a significantly larger weight in the index compared to their share of earnings, which raises concerns about potential overconcentration risks. Image: Goldman Sachs Global Investment Research
Valuation – Market Capitalization of Stock Market / M2 Money Supply The current high market capitalization of U.S. equities relative to M2 suggests that investors are anticipating very optimistic future earnings and a stable economic outlook. Image: Gavekal, Macrobond
Magnificent Seven Weighting in the S&P 500 Index While the Magnificent Seven have shown remarkable performance and growth potential, there is increasing consensus among analysts that their current valuations may reflect a mania rather than sustainable growth. Image: Alpine Macro
S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The dominance of the top 10 U.S. companies in the S&P 500 Index raises concerns about the index’s ability to provide adequate diversification for investors. Image: Societe Generale Cross Asset Research
Global Market Capitalization of All Equities With the United States holding a dazzling 67% of the global equity market—setting a new record—it looks like the rest of the world is just here for the popcorn and fireworks! Image: Goldman Sachs Global Investment Research
Total Cryptocurrency Market Capitalization The cryptocurrency market has witnessed significant growth recently, with its total market capitalization approaching US$4 trillion. Image: Gavekal, Macrobond
Market Capitalization of the Largest Stock Relative to the 75th Percentile Stock Investing in a highly concentrated stock market is like swimming with sharks: thrilling, but you need to know how to avoid getting bitten! Image: Goldman Sachs Global Investment Research
Short Interest as % of Market Capitalization S&P 500 Median Median short interest in the S&P 500 has dropped to 1.8%, a relatively low figure indicating that market participants are generally optimistic or, at least, not notably bearish about the index’s future performance. Image: Goldman Sachs Global Investment Research
S&P 500 Index Market Capitalization as a Percent of World GDP The S&P 500 has seen its market capitalization rise to levels that approach 50% of the world’s GDP, highlighting the significant role of U.S. companies in the world economy. Image: Morgan Stanley Wealth Management
Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities
China as % of MSCI ACWI Market Capitalization Assuming that China’s market capitalization as a percentage of the MSCI ACWI rises to its 2018 high of 4.0%, this scenario presents a potential upside of approximately 30% for investors. Image: BofA Global Investment Strategy