Cyclicals to Defensive Stock Ratio and Treasury Bonds Market internals, the preference for large over small and quality over junk, suggest that the recovery will be modest. Image: Morgan Stanley Research
Secular Growth Stocks Relative to Defensive Stocks More downside ahead? This chart suggests that secular growth stocks are at risk. Image: Morgan Stanley Research
Cyclical to Defensives Stock Ratio and U.S. 10-Year Bond Yield The cyclical/defensives stock ratio points to economic weakness. Image: Morgan Stanley Research
Stocks – Global Cyclical Relative to Defensive Sectors vs. U.S. 10-Year Yields Is now the time for defensive stocks? Image: Longview Economics
Stocks – Cyclicals vs. Defensives Cyclical stocks are expected to outperform defensive stocks from an improving economy. Image: Goldman Sachs Global Investment Research
Cyclical Stocks – World Cyclicals vs. Defensives Around Bear Markets Cyclicals have recovered vs. defensives, in line with the average recovery, but they have lagged the post-GFC recovery. 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
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
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
Cyclicals/Defensives vs. ISM Manufacturing PMI Should investors favor defensive stocks for the rest of the year? Image: Nordea and Macrobond