U.S. Private Sector Financial Assets % of GDP This chart highlights the obvious disconnect between Main Street and Wall Street, as the value of U.S. financial assets is now 6.3 times the size of U.S. GDP. Image: BofA Global Investment Strategy
Weekly Financials Flows Bye-bye financial stocks? This week saw the largest outflows from financials since March 2020. Image: BofA Global Investment Strategy
Equity – Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors So far, allocations to equities remain below the peak of the tech bubble. Image: Goldman Sachs Global Investment Research
U.S. Households’ Equity Allocation as a % of Total Financial Assets US households’ equity allocation has risen to record highs. What could go wrong? Image: Longview Economics
Cumulative Flows Into Tech, Energy, Materials and Financials Late cyclicals flows are outperforming tech year-to-date. Image: BofA Global Research
Relative Price of Real Assets vs. Financial Assets and U.S. CPI Inflation Real assets tend to move in line with inflation and generally performs well in inflationary environments. Image: BofA Global Investment Strategy
Financial Markets – Stock-to-Bond Ratio and S&P 500 Composite Valuation Index Financial markets are pricing in a major economic boom. Image: Alpine Macro
S&P 500 Quarterly Net Margins Ex-Financials Net margins rebounded sharply in the first quarter of 2021. Image: BofA US Equity & Quant Strategy
S&P 500 Financials Relative Performance vs. S&P 500 Will financials outperform the S&P 500 over the next few years? Image: BofA US Equity & Quant Strategy
Incremental Nominal GDP from each $1 of Additional Debt vs. U.S. Non-Financial Debt % of GDP Rising U.S. debt with falling nominal GDP per $1 of incremental debt suggests insolvency by 2040. Image: Stifel