Global Market Implied Equity Risk Premiums With equity risk premiums low in the U.S. and Japan, investors earn little extra for taking on stock risk over safer bonds, leaving equities a tougher call and prone to disappointment. Image: Goldman Sachs Global Investment Research
Share of Global Market Capitalization The U.S., with barely 4% of the world’s people, dominates 62% of global equity value. Its innovation engines continue to magnetize foreign money. Like it or not, global markets still move to America’s rhythm. Image: Goldman Sachs Global Investment Research
Growth Investment Ratio of U.S. vs. Global Markets U.S. exceptionalism is expected to persist, even as the S&P 500 has underperformed year-to-date. The Growth Investment Ratio in the U.S. stands at 42%, compared to 26% in the rest of the world, with the gap steadily widening in recent years. Image: Goldman Sachs Global Investment Research
Valuation – Global GDP vs. Global Market Capitalization Is the global market capitalization to global GDP a sign of global equity overvaluation? Image: Richardson Wealth
China – Evergrande and Global Markets (Survey) Will Evergrande have a limited impact on global markets? Image: Deutsche Bank
U.S. Tech and Global Markets – Nasdaq Composite vs. MSCI World ex. U.S. This chart shows the dominance of U.S. tech companies in global markets, as the Nasdaq has grown bigger than the rest of the world’s stock market. Image: Goldman Sachs Global Investment Research
The SARS Analog – Virus Outbreaks and Global Markets The chart shows the SARS analog (2002 vs. 2020), highlighting the S&P 500 Index, the MSCI China Index, emerging markets vs. U.S. EPS and the CRB Raw Industrials Index. Image: Fidelity Investments
Net Weekly Global Flows: Equity vs. Money Markets Strong equity inflows and shrinking money market assets show investors are pulling cash out of safe havens and putting it back to work in stocks, giving new life to the “cash on the sidelines” story. Image: Goldman Sachs Global Investment Research
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
Global Money Market Fund Assets Global money market fund assets hit a new all-time high of $9.7 tn, highlighting the perceived security and attractiveness of these funds as a viable approach for temporarily storing and increasing capital. Image: Goldman Sachs Global Investment Research
Flows into Global Money Market Funds There were significant flows into global money market funds in the first 9 weeks, as rate rises. Image: Goldman Sachs Global Investment Research