Global Market Capitalization of All Equities The United States dominates the global equity market with a 65% share of total capitalization, marking an all-time high. As Warren Buffett once said, “It never pays to bet against America.” Image: BofA Global Investment Strategy
Equities – FMS Global Equity Allocation FMS investors significantly increased their equity allocation in October, the largest rise since June 2020. This shift is primarily due to a favorable economic climate resulting from the easing of monetary policies by major central banks. Image: BofA Global Fund Manager Survey
CTAs Exposure to Equities The allocation of Commodity Trading Advisors to equities, currently at the 47th percentile, indicates a conservative stance compared to historical data. Image: Deutsche Bank Asset Allocation
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
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