U.S. Equity Valuation Metrics (Z-Score Since 1900) U.S. equity valuations remain stretched, with most valuation metrics sitting more than two standard deviations above history. Cheap may be dead, but momentum can keep this market running longer than most expect. Image: The Daily Shot
Sentiment – Risk Appetite and Expected U.S. Equity Market Performance Risk appetite among U.S. equity fund managers held up in July, though it was hardly enthusiastic. Valuations, geopolitics and monetary policy are still weighing on near-term return expectations. Image: S&P Global Market Intelligence
Equity Sector Flows Money is still flooding into tech, industrials and real estate. Investors are chasing visible growth, hard assets and direct exposure to AI and infrastructure demand. Image: J.P. Morgan Equity Derivatives Strategy
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total What once reflected the market now drives it. The top ten S&P 500 names account for 39% of the index and 36% of earnings, lifting valuations and making the ride more volatile. Upside can look smooth. The drop rarely…
Discretionary vs. Systematic Equity Positioning Systematic strategies are back at the 71st percentile, firmly overweight, while discretionary investors are at the 42nd percentile, close to neutral. Image: Deutsche Bank Asset Allocation
Consolidated Equity Positioning Consolidated equity positioning sits at the 53rd percentile, modestly overweight, with crowding limited and upside still intact. Image: Deutsche Bank Asset Allocation
U.S. Equity Index P/E Valuations vs. History Risk appetite is still holding up. The Russell 2000 trades at 26 times forward earnings, versus 25 for the Nasdaq 100 and 20 for the S&P 500. It’s far from cheap, but demand for equities has not faded yet. Image: Goldman Sachs Global Investment Research
Equity Positioning At the 36th percentile, overall equity positioning points to a modest underweight, while large-cap Tech is near neutral at the 45th percentile, leaving room to increase exposure. Image: Deutsche Bank Asset Allocation
Cumulative Global Equity Fund Flows Across Regions U.S. equity inflows are holding up well and have picked up pace in recent months, adding fuel to the market’s upward momentum. Image: Goldman Sachs Global Investment Research
Median Stock Return on Equity vs. P/E Valuation Profitability gaps go a long way in explaining why equity indices trade at different valuations. Companies that generate higher returns on equity typically earn richer multiples. Image: Goldman Sachs Global Investment Research
Cumulative Equity Flows U.S. and international equity inflows have remained robust over the past year and have accelerated in recent months, pointing to a supportive environment for further market upside. Image: Deutsche Bank Asset Allocation