GS U.S. Financial Conditions Index Despite lower policy rates and the Fed’s decision to end quantitative tightening, U.S. financial conditions have tightened recently. For investors, the policy backdrop isn’t as friendly as the rate cuts imply. Image: Goldman Sachs Global Investment Research
S&P 500 Quarterly Net Profit Margin (ex. Financials & Utilities) The S&P 500 has never been so profitable, and analysts expect margins to widen through 2026, keeping the bull story intact. Image: Goldman Sachs Global Investment Research
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
S&P 500 CAPE Ratio vs. U.S. Households Holding of Equities % Total Financial Assets U.S. households have never been this deep in equities. It’s a sign of booming wealth and market faith — but also a setup for sharper pain if a correction brings valuations back down to earth. Image: Topdown Charts
S&P 500 Trailing 4-Quarter Net Profit Margin (Ex. Financials) Over the past 35 years, the S&P 500’s profit margin has climbed from 5% to 12% and has held at high levels in recent years, with forecasts pointing to continued growth in 2026 and 2027. Image: Goldman Sachs Global Investment Research
Financial Gold Models Deutsche Bank has raised its gold price forecast to an average of $4,000 per ounce for 2026, driven by strong central bank buying, a weakening U.S. dollar, expected Fed rate cuts, and ongoing global uncertainties. Image: Deutsche Bank
Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors Investor allocation to equities has reached an all-time high, driven by retail enthusiasm and strong performance. However, rising valuations and concentrated leadership call for careful risk management. Image: Goldman Sachs Global Investment Research
Global Financial Conditions Index Global financial conditions have eased to a 12-month low, supported by expectations of monetary policy easing, improved investor sentiment, tightening credit spreads, and a more stable economic outlook. Image: Goldman Sachs Global Investment Research
Financials Group Positioning Financial positioning is still low, currently at the 34th percentile, which suggests room for further growth. Image: Deutsche Bank Asset Allocation
Returns for Major Global Financial Assets The S&P 500 index rose 2.17% in July, which has historically been the best month in post-election years and over the past two decades. Image: Deutsche Bank
Changes in Financial Conditions Looser U.S. financial conditions over the past three months are poised to reinforce two central pillars of economic growth: consumer spending and business investment. This is likely to benefit the U.S. stock market. Image: Goldman Sachs Global Investment Research