Correlation with Vaccine Optimism (Value, Defensives, S&P 500, Cyclicals and Growth) Value could outperform as vaccine optimism increases. Image: Goldman Sachs Global Investment Research
U.S. 10-Year Treasury Yield vs. Cyclical/Defensives Stock Ratio The recent rise in the cyclical/defensives stock ratio could suggest a rise in 10-year yields. Image: Morgan Stanley Research
Tech + Mega-cap Growth Stocks vs. Cyclicals ex Mega-cap Growth and Tech Performance across sectors has been closely correlated with the increase in the number of Robinhood users. Image: Deutsche Bank Asset Allocation
10-Year U.S. Treasury Yield vs. Cyclical to Defensives Stock Ratio The divergence between the 10-year U.S. Treasury yield and the cyclical to defensives stock ratio suggests higher yields ahead. Image: Morgan Stanley Research
U.S. Equity Strategy – Cyclicals vs. Defensives and S&P 500 Morgan Stanley suggests that the S&P 500 has potential downside to 2800-2850, as the correction in early June is likely not over. Image: Morgan Stanley Research
Performance of U.S. Growth vs. Value Stocks, U.S. vs. non-U.S. Equities and S&P Cyclicals vs. Defensives Equity rotation are delivering for non-U.S. vs. U.S. markets and Cyclicals vs. Defensives, but not for Value vs. Growth. Image: J.P. Morgan
Hedge Funds’ Cyclical vs. Defensive Positioning Hedge funds posted a rotation out of cyclical stocks. Image: BofA US Equity and Quant Strategy
MSCI USA Cyclical Sectors-Defensive Sectors Spread USD Index vs. 2-Year/30-Year U.S. Treasury Yield Curve This chart suggests that cyclical outperformance of defensives tends to be correlated with the shape of the 2-year/30-year U.S. Treasury yield curve. Image: Morgan Stanley Research
Cyclicals/Top 1500 and U.S. Recession Morgan Stanley sees a massive upside in cyclical shares, in a sharp V-shaped economic recovery. Image: Morgan Stanley Research
Cyclical to Defensives Stock Ratio and U.S. 10-Year Bond Yield The cyclical to defensives stock ratio suggests higher bond yields. Image: Morgan Stanley Research