Equity Market and Share of the Biggest Sector in the U.S. History keeps repeating on Wall Street — when diversification fades, sector dominance rises. But it never lasts. Sooner or later, shifts in the economy, technology, or geopolitics bring the rotation full circle. Image: Goldman Sachs Global Investment Research
Equity Performance – MSCI China vs. MSCI U.S. Beijing’s early-2024 intervention lit a rocket under Chinese equities, leaving Wall Street in the dust. Fueled by stimulus and growing investor conviction, the rally could stretch further if geopolitical tensions cool. Image: Gavekal, Macrobond
Consolidated Equity Positioning Consolidated equity positioning is moderately elevated at the 66th percentile—constructive, but not crowded, leaving room for further upside. Image: Deutsche Bank Asset Allocation
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total The S&P 500, once a broad market-based, now moves to the rhythm of its ten biggest stocks, which command over 42% of its value—far more than earnings alone would justify, amplifying volatility and eroding diversification. Image: Goldman Sachs Global…
U.S. Equity Index P/E Valuations vs. History Valuations are red-hot. The S&P 500 at 23 times forward earnings and the Nasdaq 100 at 30 scream optimism — investors are still all-in on the next earnings leg, with tech and AI names powering the momentum. Image: Goldman Sachs Global Investment Research
Discretionary vs. Systematic Equity Positioning Overall market positioning points to a moderate risk appetite — discretionary investors sit slightly above neutral, while systematic strategies lean overweight but shy of extremes. Image: Deutsche Bank Asset Allocation
Equity Allocation as % of Household Financial Assets Equities dominate household portfolios in the U.S., Australia, and Sweden, but caution still rules in Europe and Japan, where cash and liquid assets remain king. Image: Goldman Sachs Global Investment Research
Cumulative Equity Sector Fund Flows Equity funds have continued to attract solid inflows in 2025, driven by strong demand for U.S. and Chinese markets. The buying has been selective, with money gravitating toward Technology, Financials, Materials, and Industrials. Image: Deutsche Bank Asset Allocation
Weekly Change in Equity Positioning Equity positioning saw its sharpest weekly pullback since “Liberation Day” in April—a dip many traders were quick to buy. Image: Deutsche Bank Asset Allocation
Discretionary Investors Equity Positioning vs. S&P 500 EPS Growth Discretionary investors are betting on an earnings downturn that looks increasingly out of sync with the data. If that pessimism fades, risk appetite could roar back fast and push equities higher. Image: Deutsche Bank Asset Allocation
Breakdown of Household Equity and Mutual Fund Ownership by Wealth Percentile Call it the American Dream—or a widening divide. The top 1% own roughly half of America’s market wealth. The bottom half? Just 1%. The gap isn’t closing—it’s widening since 1990. Image: Goldman Sachs Global Investment Research