Search Results for: equity

Passive Equity Fund Assets vs. Active Record passive inflows suggest passive equity funds will surpass active by 2022. Picture source: BofA Merrill Lynch

U.S. Equity and Bond Correlation The potential risk for a 60/40 portfolio is that the negative correlation between U.S. equity and bond could flip. Picture source: BofA Merrill Lynch

Sector Composition of the S&P 500 by Equity Capitalization This chart shows the evolution of S&P 500 sectors over time. Picture source: Goldman Sachs Global Investment Research

Russell 2000 Trailing EV/EBITDA Multiples vs. Private Equity EBITDA Multiples This chart shows that private equity multiples are currently higher than public equity multiples. Picture source: Strategas

S&P 500 LTM Return On Equity (ROE) The S&P 500 LTM Return On Equity (ROE) gives a picture of corporate profitability and remains high relative to history. Picture source: Goldman Sachs Global Investment Research

Buybacks – Cumulative Net Buying of U.S. Corporate Equity This chart shows that since 2009, buybacks have been the source of the rally in the U.S. stock market. Picture source: Oxford Economics, Macrobond

U.S. Market – Earnings, Valuation and Equity Risk Premium This chart shows that the P/E ratio is above average, but the equity risk premium is relatively high. Picture source: Fidelity Investments

Global Equity – Global Bond Fund Flows In the past two weeks, investors have shifted from bonds to equities. Picture source: BofA Merrill Lynch Global Investment Strategy

Equity Market Tops Interesting chart showing equity market tops. The U.S. equity market hasn’t yet reached its peak. Picture source: DoubleLine

S&P 500 Valuation and Equity Risk Premium This chart shows that the equity risk premium (earnings yield less 10-year Treasury yield) has declined to 3.9%. Picture source: Fidelity Investments