Free Cash Flow Margin for S&P 500 and Tech Sector The free cash flow margin for the tech sector has risen from less than 5% in the aftermath of the Internet bubble to more than 23% today. Image: J.P. Morgan Asset Management
Cash in Customers’ Cash and Margin Accounts vs. S&P 500 Market Capitalization Free credit (cash) in customer accounts as % of S&P 500 market cap has moved lower, offering further bullish confirmation for the S&P 500. Image: BofA Global Research
S&P 500 vs. Profit Margins Do valuations still matter? The current divergence between the S&P 500 and profit margins is huge. Image: Crescat Capital LLC
Free Credit Balances in Customers’s Cash Accounts and Securities Margin Accounts Cash levels in customers cash and margin accounts surged to the highest level since July 2008. Image: BofA Global Research
FINRA Margin Debt and 12-Month Z-Score The 12-month z-score for margin debt dropped to its deepest oversold level since October low, which is a contrarian bullish signal for stocks. Image: BofA Global Research
Typical Peak to Trough Decline in S&P 500 Net Margins The peak to trough decline in S&P 500 net margins is 168 bp on average during past recessions. Goldman Sachs expects a contraction in net margin by 200 bp in 2020. Image: Goldman Sachs Global Investment Research
Gross Margin: S&P 500 Large Cap vs. S&P 600 Small Cap and S&P 400 Mid Cap Gross margins between large and small caps are widening. Industries with highest concentrations are getting all of the gross margin improvement. Image: Arbor Research & Trading LLC
U.S. NIPA Profit Margins and Recessions Chart showing the longest margin contraction in post-war history, for nearly 5 years. Image: Oxford Economics
Profit Margins of S&P Large Caps and Small Caps Profit margins between small and large caps are widening. Industries with highest concentrations are getting all of the profit margin improvement. Image: Arbor Research & Trading LLC
S&P 500 and Margin Debt Margin debt has still not recovered from last December’s lows. Usually, it is mostly bullish for stocks, because investors are still fearful. Image: Merk Investments