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
Sentiment – Risk Appetite and Expected U.S. Equity Market Performance Investor risk appetite in the U.S. equity market remains low in April, amid concerns over the political environment, economic outlook and fiscal policy. Image: S&P Global Market Intelligence
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
Foreign Investor Ownership Share of U.S. Equity Market Foreign investor holdings of U.S. stocks have reached an unprecedented 18%, setting a new record. However, upcoming trade policy shifts and global economic uncertainties could impact future foreign investment in American equities. Image: Goldman Sachs Global Investment Research
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total Concerns about overconcentration arise 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
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
When Do You Expect the U.S. Equity Market Will Peak? 77% of financial advisors believe the bull market will continue beyond 2024, as they expect stellar corporate results, easy financial conditions, and lower interest rates to support its continuation. Image: BofA US Equity & Quant Strategy
Gold – Beta of USD/xxx to Equity Market Volatility Related to Government Spending Gold has been a very good hedge against debt ceiling worries in the past. Image: Deutsche Bank
Equity Market Volatility Related to Uncertainty over Government Spending Equity market volatility may spike when the debt ceiling is under discussion. Image: Deutsche Bank
Money Market Fund Assets as a Percent of S&P 500 Market Capitalization Cash on the sidelines is not elevated relative to the S&P 500 market capitalization. Image: Morgan Stanley Wealth Management