S&P 500 Equity Risk Premium and Yield Gap With the S&P 500 equity risk premium at historically low levels, the current investment landscape presents significant challenges for equity investors. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Yield Gap vs. Real 10-Year U.S. Real Treasury Yield U.S. equities look expensive relative to rates. Image: Goldman Sachs Global Investment Research
S&P 500 NTM EPS Yield Gap vs. 6-Month T-Bill Yields Cash is becoming an attractive option for investors. Image: Goldman Sachs Global Investment Research
Mega-Cap Tech Earnings Yield Gap How long will the mega-cap tech earnings yield gap vs. 10-year UST remain below the historical average? Image: Goldman Sachs Global Investment Research
Labor Market – U.S. Jobs-Workers Gap A tight labor market contributes to wage inflation. Image: Goldman Sachs Global Investment Research
Yield Gap – S&P 500 EPS Yield vs. U.S. 10-Year Treasury Yield Relative U.S. equity valuations are still attractive vs. history. Image: Goldman Sachs Global Investment Research
S&P 500 NTM Earnings Yield Gap The S&P 500 earnings yield gap is expected to move towards its long-term average. Image: Goldman Sachs Global Investment Research
U.S. Labor Market and U.S. Output Gap Should investors expect a quick recovery in the U.S. labor market? Image: BCA Research
U.S. Output Gap (Plus Projections) as a Proportion of Potential GDP According to Deutsche Bank, the U.S. output gap is expected to rise above 2%, which tends to lead to higher prices. Image: Deutsche Bank
S&P 500 NTM Earnings Yield Gap – Earnings Yield Gap vs. Inflation and U.S. Treasury Yield The earnings yield gap vs. U.S. 10-year Treasury yield is low, but still above its long-term average. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 NTM P/E vs. Gap Between S&P 500 Earnings Yield and U.S. 10-Year Treasury Yield Goldman Sachs expects a roughly flat S&P 500 P/E multiple through 2022. Image: Goldman Sachs Global Investment Research