Global Equity Valuations With U.S. equities priced at a premium and other global markets—such as Emerging, Frontier, and non-US Developed Markets—offering more attractive valuations, investors are reevaluating their global diversification strategies. Image: Topdown Charts
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
Equities – FMS Global Equity Allocation FMS investors significantly increased their equity allocation in October, the largest rise since June 2020. This shift is primarily due to a favorable economic climate resulting from the easing of monetary policies by major central banks. Image: BofA Global Fund Manager Survey
Sentiment – Global Equity Risk-Love The Global Equity Risk-Love indicator, currently at the 68th percentile, has moved out of the euphoria territory, allowing for potential upside as we approach year-end. Image: BofA Predictive Analytics
Active Global Equity Fund Flows and % MSCI ACWI Members Trading Above 200-DMA Flows to active global equity funds correlate strongly with stock price dispersion. Higher dispersion creates more opportunities for active managers, especially in volatile markets, boosting investor interest and inflows. Image: BofA Global Investment Strategy
Flows into Global Equity Funds Flows into global equity funds have accelerated in recent weeks, reflecting a growing appetite for riskier investments. Image: Goldman Sachs Global Investment Research
Cumulative Global Equity Fund Flows Across Regions In 2024, U.S. equities have seen notable inflows, indicating a resurgence of investor confidence despite ongoing concerns about valuations. Image: Goldman Sachs Global Investment Research
Passive Global Equity Flows Outflows from passive global equity funds are large. Image: BofA Global Investment Strategy
Active Global Equity Flows Outflows from active global equities persist. Image: BofA Global Investment Strategy
Annual Change in Global Equity Market Capitalization The global equity market capitalization has lost $30tn year-to-date. Image: Goldman Sachs Global Investment Research
Do You Think Global Equity Markets Will Experience a Bear Market? Most FMS investors expect that global equity markets will experience a bear market this year. Image: BofA Global Fund Manager Survey