Systematic Equity Positioning Systematic equity positioning at the 6th percentile reflects extreme caution amid high volatility. Such a low level is often seen as a potential contrarian buying opportunity in the market. Image: Deutsche Bank Asset Allocation
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total Concerns persist about excessive concentration, as the top 10 stocks in the S&P 500 hold a significantly larger weight in the index than their share of earnings would suggest. Image: Goldman Sachs Global Investment Research
Discretionary vs. Systematic Equity Positioning While discretionary investors have raised their risk exposure after the 90-day reprieve on reciprocal tariffs, systematic strategies have maintained low positioning due to persistently elevated volatility. Image: Deutsche Bank Asset Allocation
Consolidated Equity Positioning Given that consolidated equity positioning is at the 11th percentile, there could be significant upside potential if trade tensions ease. Image: Deutsche Bank Asset Allocation
U.S. Equity Index P/E Valuations vs. History The S&P 500’s forward P/E ratio of 20x exceeds its long-term average, underscoring that current valuations remain elevated by historical standards. Image: Goldman Sachs Global Investment Research
Equity Sector Flows Strong inflows continue to bolster the technology sector, reflecting sustained bullish sentiment among investors and supporting the sector’s resilience and growth. Image: J.P. Morgan Equity Derivatives Strategy
Notional Volume Traded in Listed U.S. Equity Options Thanks to strong participation from both retail and institutional investors, U.S. equity options are seeing rising average daily trading volumes—a trend that shows no signs of slowing down. Image: Goldman Sachs Global Investment Research
Aggregated U.S. Equity Futures Positions and S&P 500 Relative to Its 200-DMA While leveraged funds and asset managers have slightly scaled back their bullish stance, they still maintain substantial net long positions in U.S. equity futures. Image: Deutsche Bank Asset Allocation
Ownership Breakdown of the U.S. Equity Market (Share of Corporate Equity Market) U.S. households own 38% of the U.S. equity market, demonstrating strong confidence in stocks. However, stock ownership is highly concentrated, with the wealthiest 10% holding approximately 90% of all household-owned equities. Image: Goldman Sachs Global Investment Research
Discretionary Equity Positioning Discretionary equity positioning is at the 14th percentile, reflecting investor caution without extreme bearishness. This leaves room for significant upside if trade tensions ease. Image: Deutsche Bank Asset Allocation
Global Market Implied Equity Risk Premiums The current low U.S. equity risk premium highlights a difficult investment climate, with investors potentially undercompensated for the risks of equity investing. Image: Goldman Sachs Global Investment Research