Cyclical/Defensive Equities Ratio and 10-Year Treasury Yield The chart shows the correlation between the cyclical/defensive equities ratio and the 10-year treasury yield, signaling an economic slowdown. Picture source: Morgan Stanley Research
Who Is Buying U.S. Equities? The only buyer of US equities remains corporates, not households and institutions. Picture source: BofA Merrill Lynch Global Investment Strategy
U.S. Equities at 70-Year Highs vs. European Equities Are European stocks more attractive than U.S. stocks? Currently, the euro area economy is more impacted by the global slowdown than the U.S. economy. And investors also think that the euro area economy is less resilient than the U.S. economy in the event of a shock. Picture source:…
Cumulative Mutual Fund + ETF Flows by Bull Market Cycle: Bonds vs. Equities Flows Is this the most hated bull market in history? Well, investors continue buying bonds. Picture source: ICI Mutual & ETF Flow
U.S. Equities – One Year Return After a Fed Rate Cut The chart shows how U.S. equities have historically performed after a 25 bps and 50 bps Fed rate cut over the last 35 years. You may also like “First Fed Rate Cut.” Picture source: Ycharts
South Korea Equities Lead U.S. 10-Year Treasury Yield Interesting chart suggesting that South Korea equities YoY lead the U.S. 10-year Treasury yield by 6 months. Picture source: Rothko Research
U.S. Equities and The World: Earnings Growth vs. Multiple Expansion Since the 2009 low, the strong performance of the U.S. markets comes from earnings growth (73%) and multiple expansion (27%). You may also like “S&P 500 Return: Earnings Growth vs. Multiple Expansion.” Picture source: Goldman Sachs Global Investment Research
Emerging Markets Equities Around First Rate Cut Emerging markets equities rallied 12% and 29% around the first rate cuts of 2001 and 2007. Picture source: BofA Merrill Lynch Global Research
Best First Half for U.S. Equities and U.S. Bonds since 1995 Since 1995, it is the best first half for U.S. equities and U.S. long bonds, despite the challenge of low bond yields. Picture source: Financial Times
European Equities Lead Bund Yields by 6 Months Because European equities tend to lead bund yields by 6 months, bund yields should turn higher. Picture source: Reuters
