Equities – 10-Year Forward Annualized Total Returns in Local Currency Rich valuations aren’t stopping Goldman Sachs from backing global equities, with Emerging Markets and Asia seen leading performance over the next 10 years. Image: Goldman Sachs Global Investment Research
Global Equities Performance The 2025 stock rally is spreading across regions, powered by strong gains in Europe and Asia while U.S. equities trail. Broad participation like this tends to keep bull runs alive longer than consensus forecasts. Image: Goldman Sachs Global Investment Research
Performance of AI-Exposed Equities – Indexed Return vs. Equal-Weight S&P 500 The AI rally remains a story of infrastructure winners, with chip giants, data-center builders, and cloud platforms reaping the rewards as application and productivity names struggle to catch up. Image: Goldman Sachs Global Investment Research
Equities – 10-Year Forward Annualized Total Returns in Local Currency Despite historically high valuations that could cap gains, Goldman Sachs forecasts robust global equity returns, led by Emerging Markets and Asia, which are expected to deliver the strongest growth over the next 10 years. Image: Goldman Sachs Global Investment Research
U.S. Equities – S&P 500 Equal Weight Index / S&P 500 Index The ratio of the equal-weighted S&P 500 to its cap-weighted version has dropped to its weakest level since May 2003—a stark reminder of how top-heavy this market has become, with a handful of megacaps driving the rally. Image: Bloomberg
Relative Regional Weights Within Global Equities Wall Street’s dominance isn’t a fresh story, but it’s hitting a new peak. Since the financial crisis, U.S. markets — supercharged by tech, record earnings, and a relentless dollar — have pulled far ahead of the pack. Image: Goldman Sachs Global Investment Research
CTAs Exposure to Equities Over the past four weeks, CTAs have tactically reduced equity exposure — down from the 90th to 75th percentile — cashing in gains across markets. Even so, they’re still notably long, riding the tailwind of a relentless equity rally. Image: Deutsche Bank Asset Allocation
Returns – Global Equities vs. Global Bonds vs. Gold vs. World Portfolio Since 1950, the world portfolio has earned a real 4.1% annual return — global equities led with 7.3%, gold lagged at 2.5%, and global bonds barely reached 1.8%. The long-run verdict is clear: equities have won. Image: Goldman Sachs Global Investment Research
S&P 500 CAPE Ratio vs. U.S. Households Holding of Equities % Total Financial Assets U.S. households have never been this deep in equities. It’s a sign of booming wealth and market faith — but also a setup for sharper pain if a correction brings valuations back down to earth. Image: Topdown Charts
U.S. vs. Non-U.S. Equities Valuations vs. ROE Investors aren’t shy about paying a premium for U.S. stocks. The payoff? Superior returns on equity and earnings growth that few markets can match. Image: Goldman Sachs Global Investment Research
Valuations and Peak of an Equities Rally Market participants are buzzing about an AI bubble with valuations sky-high. But ditching stocks now could mean missing the late-game rally—volatility shows we’re not in full-blown mania just yet. Image: Goldman Sachs Global Investment Research