Mega-Cap Growth & Tech Positioning The positioning of mega-cap growth and tech stocks in the 85th percentile indicates strong interest from market participants, thanks to their potential for growth and market leadership. Image: Deutsche Bank Asset Allocation
GDP Growth Revision The U.S. economy demonstrates resilience and promising growth outlook, in contrast to the EU and China, which face slower recoveries and economic challenges. Image: Deutsche Bank
U.S. GDP Growth Goldman Sachs is optimistic about the resilience of the U.S. economy, predicting a more favorable GDP growth outlook for 2024 and 2025 than what consensus expectations suggest. Image: Goldman Sachs Global Investment Research
EPS Growth – Political Party and S&P 500 Profits Cycle While election results can impact markets in the short term, the underlying profitability of companies is a stronger driver of stock prices over time. Image: BofA US Equity & US Quant Strategy
Valuation – Relative Forward P/E of Russell 1000 Value vs. Growth Indices The current landscape for value and growth investing reveals a significant and persistent valuation gap, with value stocks trading at lower prices relative to their growth counterparts. Image: BofA US Equity & Quant Strategy
Contributions to U.S. GDP Growth Goldman Sachs predicts a 2.2% Q4/Q4 expansion in U.S. GDP for 2024, surpassing consensus estimates and highlighting the economy’s resilience. Image: Goldman Sachs Global Investment Research
Global Composite PMI and EPS Growth The Global Composite PMI serves as a leading indicator for EPS growth, with its trends providing insights into future corporate earnings performance. Image: J.P. Morgan
Performance – Large Cap Growth vs. Small Cap Value Large-cap growth stocks are outperforming small-cap value stocks at a level not seen since the dot-com bubble era. Historical patterns and the potential for economic recovery indicate that this trend may change in the long term. Image: BofA Global Investment Strategy
U.S. GDP Growth BofA forecasts a robust U.S. GDP growth of 2.3% quarter-over-quarter (QoQ) seasonally adjusted annual rate (SAAR) in Q2 2024, reflecting the bank’s confidence in the resilience of the American economy. Image: BofA Global Research
Deviation of Earnings Above/Below Long Term Growth Trend Some investors are becoming concerned as the current earnings estimates deviate significantly from the long-term growth trend, along with the effect of a Fed rate-cutting cycle. Image: Real Investment Advice