GS U.S. Financial Conditions Index The recent easing of U.S. financial conditions could contribute to a more favorable climate for economic growth, by supporting both consumer and business activity. Image: Goldman Sachs Global Investment Research
Total Returns for a Selection of Major Global Financial Assets since the U.S. Election Since Inauguration Day, U.S. stocks have significantly underperformed major global financial assets, largely due to trade tensions, policy uncertainty, and a notable shift in investor sentiment toward international markets. Image: Deutsche Bank
Google Searches for “Global Financial Crisis” and “Great Recession” While fears of a 2025 tariff-driven recession evoke memories of 2008, some investors see today’s prevailing pessimism as a contrarian bullish signal for stocks. Historically, extreme bearish sentiment has often marked market bottoms. Image: CNBC
U.S. True Financial Conditions Index The U.S. True Financial Conditions Index stands at 6, indicating a slightly accommodative financial environment. Image: Gavekal, Macrobond
U.S. Financial Conditions Index and Real GDP Growth from FCI Last week, U.S. financial conditions tightened significantly following the White House’s announcement of “reciprocal” tariffs and China’s retaliatory measures, raising global concerns among investors and policymakers. Image: Goldman Sachs Global Investment Research
Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors With investor allocation to equities at an all-time high, the market faces increased vulnerability to volatility and substantial losses, especially in the event of a downturn. Image: Goldman Sachs Global Investment Research
Changes in Financial Conditions Since Trump’s Inauguration The “Trump trade,” as initially advertised, was characterized by expectations of a stronger U.S. dollar, rising equities, higher yields, and narrower credit spreads—the opposite of current market conditions. Image: Deutsche Bank
Equity Share of Household Financial Assets Compared to U.S. households, Europeans exhibit lower stock ownership rates, which can be explained by cultural savings attitudes, structural differences in pension systems, and a stronger preference for liquid investments. Image: Goldman Sachs Global Investment Research
Equities as a Percent of Financial Assets With favorable market conditions and increasing stock valuations, Americans now hold more than 37% of all assets in equities, marking a record high. Image: Morgan Stanley Wealth Management
Weekly Financials Flows Outflows from financial equity funds highlight a cautious approach from investors, reflecting broader economic concerns and market volatility. Image: BofA Global Investment Strategy
Tech/Telecom/Healthcare vs. Financials/Energy/Materials as % of Global Equities Should long-term investors consider buying the dip in sectors such as Financials, Energy, or Materials? Image: BofA Global Investment Strategy