Sentiment – Risk Appetite and Expected U.S. Equity Market Performance Geopolitical tensions are clouding sentiment among U.S. equity fund managers in March, but confidence in the market and the economy remains intact, as many bet the shock will be short-lived. Image: S&P Global Market Intelligence
Relative Equity Market Performance – USA vs. Rest of the World U.S. equities have lagged global peers recently, posting their steepest relative underperformance in 15 years. The leadership baton has passed to cheaper, more cyclical markets overseas, pointing to brighter days for the global cycle. Image: Deutsche Bank Research
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total What was once a mirror of the market has become a magnifying glass. Ten mega-caps now make up over 40% of the S&P 500, distorting valuations and magnifying every swing. Image: Goldman Sachs Global Investment Research
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
Foreign Investor Ownership Share of U.S. Equity Market With foreign investors holding a record 18% of U.S. stocks, they are chasing the American dream, piling into U.S. equities on hopes that President Trump keeps the bull run alive. Image: Goldman Sachs Global Investment Research
Ownership Breakdown of the U.S. Equity Market (Share of Corporate Equity Market) U.S. households hold 40% of the U.S. equity market—a show of faith in stocks. Trouble is, nearly 90% of that sits with the richest 10%. Image: Goldman Sachs Global Investment Research
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…
Concentration – Top 10 as % of Total (In Terms of Total Equity Market Capitalization) Compared to the U.S. market, China’s equity market currently shows a historically low level of market capitalization concentration, indicating greater growth potential. Image: Goldman Sachs Global Investment Research
U.S. Share of Global Equity Market The U.S. share of the global equity market, while still dominant at 54%, has retreated from its peak of 57%, reflecting recent market turbulence and growing diversification concerns. Image: Goldman Sachs Global Investment Research
Valuation – U.S. Equity Market Capitalization to GDP The U.S. equity market cap to GDP ratio is near an all-time high at approximately 187%, suggesting a significant overvaluation of the U.S. stock market. Image: Goldman Sachs Global Investment Research
Do You Believe the Risk of an Equity Market Correction at Some Point Over the Next 3-6 Months Is High or Low? JPMorgan’s survey reveals that 82% of their clients anticipate a high likelihood of an equity market correction within the next 3-6 months. Image: J.P. Morgan