Discretionary vs. Systematic Equity Positioning Both discretionary investors and systematic strategies have raised their equity exposure to neutral levels, signaling a more balanced risk outlook amid ongoing uncertainties. Image: Deutsche Bank Asset Allocation
Consolidated Equity Positioning Consolidated equity positioning, currently at the 41st percentile, is considered neutral, reflecting a balanced outlook. Image: Deutsche Bank Asset Allocation
U.S. Equity Sentiment Indicator – Equity Positioning A reading of 0.0 on the Goldman Sachs’ U.S. Equity Sentiment Indicator signals neutral sentiment, which—historically—has often been followed by positive S&P 500 returns in the subsequent month. Image: Goldman Sachs Global Investment Research
U.S. Equity Index P/E Valuations vs. History The S&P 500’s forward P/E of about 22x suggests optimism; however, it also points to greater risk, since the market is increasingly sensitive to any earnings shortfalls or macroeconomic challenges ahead. Image: Goldman Sachs Global Investment Research
Positions in S&P 500 Equity Futures by Asset Managers Even with the recent rally and record highs in US equities, asset managers’ positions in U.S. equity futures are still lower than they were at the beginning of the year. Image: J.P. Morgan
Sentiment – Risk Appetite and Expected U.S. Equity Market Performance For the first time since January 2025, U.S. equity investors’ risk appetite turned positive in July, fueled by stronger confidence in both fundamentals and the macroeconomic landscape. Image: S&P Global Market Intelligence
Equity Positioning Across Sectors Recent data confirms a robust positioning in the utilities sector. Image: Deutsche Bank Asset Allocation
Global Equity Valuations The market environment favors global ex-U.S., small-cap, and value stocks for their cheap valuations and growth potential, while U.S., large-cap, and growth stocks face valuation headwinds and higher downside risk. Image: Topdown Charts
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total The S&P 500’s top 10 stocks hold a disproportionately large share of the index’s weight relative to their earnings, which amplifies risks tied to volatility, diversification, and sector exposure. Image: Goldman Sachs Global Investment Research
Equity Sector Flows Strong IT spending and AI innovation are driving robust inflows and sustained investor enthusiasm, which in turn support the technology sector’s resilience and growth in 2025. Image: J.P. Morgan Equity Derivatives Strategy
Sentiment Indicator – Investor Equity Positions Hedge funds are currently more bullish on the market compared to other investor categories, which remain cautious and have not significantly increased their market participation. Image: Goldman Sachs Global Investment Research