Sentiment – Risk Appetite and Expected U.S. Equity Market Performance U.S. equity investors’ risk appetite has declined further in September, driven by concerns over economic growth, valuations, and political uncertainty. Image: S&P Global Market Intelligence
Systematic Equity Positioning At the 46th percentile, systematic equity positioning has significantly declined, indicating a market position that is balanced or neutral. Image: Deutsche Bank Asset Allocation
Consolidated Equity Positioning Consolidated equity positioning in the 65th percentile suggests that investors are relatively optimistic about market conditions and have a relatively high risk appetite. Image: Deutsche Bank Asset Allocation
Discretionary vs. Systematic Equity Positioning Discretionary positioning is back to mid-range levels from early 2024, suggesting stabilized investor sentiment, while systematic positioning has notably declined, now just above neutral. Image: Deutsche Bank Asset Allocation
Global Equity Flows With strong investor confidence and impressive advancements in AI, the technology sector has emerged as the leading performer in terms of inflows year-to-date, significantly outpacing other sectors. Image: BofA Global Investment Strategy
GWIM Equity Allocation as % Assets Under Management BofA’s private clients are optimistic about equity market growth and potential returns, as evidenced by their allocation of 62% of their portfolios to equities. Image: BofA Global Investment Strategy
Equity Share of Household Financial Assets Cultural attitudes towards savings, structural differences in pension systems, and a preference for liquidity contribute to lower stock ownership rates among European households compared to their U.S. counterparts. Image: Goldman Sachs Global Investment Research
Ownership Breakdown of the U.S. Equity Market (Share of Corporate Equity Market) U.S. households hold the largest share of the equity market, reflecting confidence in stocks. However, ownership is very concentrated, with the wealthiest 10% owning about 93% of all U.S. stocks held by households. Image: Goldman Sachs Global Investment Research
Flows into Equity and Bonds Funds Substantial inflows into equity and bond funds are fueled by investor optimism regarding falling inflation and the potential for interest rate cuts by the Fed. Image: Deutsche Bank Asset Allocation
Implied Equity Allocation by Non-Bank Investors Globally Despite concerns about potential economic slowdowns, investors are currently maintaining an overweight position in global equities, suggesting a positive outlook for stock markets. Image: J.P. Morgan