Valuation – S&P 500 Cyclically-Adjusted P/E Ratio

Valuation – S&P 500 Cyclically-Adjusted P/E Ratio Should investors take a cautious approach to U.S. equities as the S&P 500’s cyclically-adjusted P/E ratio remains elevated? Image: Gavekal, Macrobond

Cyclical Value vs. Defensive Value

Cyclical Value vs. Defensive Value Energy and financials are expected to outperform the S&P 500 as the recovery continues. Image: Topdown Charts

Performance – Cyclicals/Top 1000

Performance – Cyclicals/Top 1000 Cyclicals are expected to underperform over the next quarter or two. Image: Morgan Stanley Research