Consolidated Equity Positioning Consolidated equity positioning, currently at the 35th percentile, has steadily increased and is nearing neutral, indicating a gradual shift from defensive to more balanced equity exposure. 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
U.S. Equity Index P/E Valuations vs. History The S&P 500’s forward P/E ratio is about 22x, higher than its historical average. While this indicates optimism, it also means the market is more vulnerable to earnings disappointments, increasing potential risks ahead. Image: Goldman Sachs Global Investment Research
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
Discretionary vs. Systematic Equity Positioning Discretionary investors are maintaining an underweight stance in equities at the 22nd percentile. Meanwhile, systematic strategies are gradually increasing their equity exposure but remain underweight overall. Image: Deutsche Bank Asset Allocation
Risk-Adjusted Returns Across U.S. Equity Indices The S&P 500’s performance so far this year has been marked by relatively low returns and high volatility, leading to weak risk-adjusted outcomes and signaling a challenging environment for investors seeking favorable risk-reward balances. Image: Goldman Sachs Global Investment Research
Global Market Implied Equity Risk Premiums The low U.S. equity risk premium reflects a market where investors earn little to no additional expected return for taking on the higher risk of stocks compared to bonds. As a result, equity investing becomes more challenging. Image: Goldman Sachs Global Investment Research
Systematic Equity Positioning Systematic strategies continue to adopt a cautious stance, as equity positioning remains at the 24th percentile amid ongoing market uncertainty. Image: Deutsche Bank Asset Allocation
Concentration – Top 10, Top 3 and Top 1 as % of Total (In Terms of Total Equity Market Capitalization) China has one of the lowest market capitalization concentrations worldwide, with its top ten companies comprising only 17% of total market cap—much less than the US’s 34%—indicating greater growth potential in China. Image: Goldman Sachs…