Flows to Japan Equities While Japanese equities have faced significant outflows recently due to shifting investor sentiment, underlying structural reforms and an evolving economic landscape may provide opportunities for recovery in the future. Image: BofA Global Investment Strategy
Global Equities Around Fed Cut With And Without Recession Global equities typically show strong performance following the Fed’s first rate cut, when the economy avoids a recession during the next 12 months. Image: Goldman Sachs Global Investment Research
Performance – Price Ratio of Emerging Markets to U.S. Equities Since the global financial crisis, emerging market equities have continuously underperformed U.S. equities, leading to the current situation where the ratio between the two is at its lowest since 1969. Image: BofA Global Investment Strategy
Equities – China’s Valuations If the MSCI China P/E ratio increases from its current range of 11-12x to a peak of 15-16x, this could represent a potential upside of approximately 40%. Image: BofA Global Investment Strategy
CTAs Exposure to Equities The allocation of Commodity Trading Advisors to equities is currently at the 44th percentile, indicating it is relatively low compared to historical data. Image: Deutsche Bank Asset Allocation
U.S. vs. Developed Market Equities (ex-US) Price Relative While there is potential for U.S. equities to maintain their lead in the near term due to strong earnings and market dynamics, historical cycles suggest that this dominance may wane as international markets recover and valuations adjust. Image: BofA Global Investment Strategy
Global Equities Flows In August, global equity funds saw significant outflows, the largest since 2022, reflecting a cautious sentiment among investors. Image: J.P. Morgan
Equities vs. Bonds Recent trends suggest that the risk/reward profile of bonds, particularly U.S. Treasuries, has become more favorable compared to equities. Image: Gavekal, Macrobond
Returns – U.S. Equities vs. Commodities While commodities can serve as a hedge in certain market conditions, U.S. equities are likely to continue outperforming them over the long term due to their lower volatility, more stable returns, and historical performance trends. Image: BofA Global Investment Strategy
U.S. Households Allocation to Corporate Equities as a % of Financial Assets Historically, periods of high household equity allocation have been followed by lower market returns, suggesting that current trends may signal potential risks for future investors. Image: MarketDesk Research