U.S. Stockmarket Valuations – Combined PE Ratio U.S. tech stocks are viewed as expensive relative to the broader market. Although the rest of the market is not as pricey as tech stocks, it is still not considered cheap. Image: Topdown Charts
All Money Market Funds Total Net Assets Investors currently hold $6.154 trillion in money market funds, which is being interpreted as a contrarian bullish signal for the stock market. Image: BofA Global Research
U.S. Stock Market Bull and Bear Indicator Using multiple financial data, this great model helps investors navigate through different market conditions. It suggests whether the U.S. stock market tendency is bullish, bearish or neutral. It is a contrarian indicator. A bullish signal suggests that the U.S. stock market may go up, while a bearish signal…
Market – Current Pricing of Policy, Political and Macro Outcomes Investors are confidently predicting a 100% chance of a Fed rate cut on September 18, a 75% likelihood of Donald Trump winning the U.S. election on November 5, and a 68% probability of a soft landing within the next 12 months. Image: BofA Global Investment…
Earnings Sentiment (Analyst Upgrades Minus Downgrades Across Markets) Will earnings sentiment in the S&P 500 improve, driven by expectations for strong corporate performance during the earnings season? Image: Goldman Sachs Global Investment Research
Different Market Sentiment Indicators Most market sentiment indicators demonstrate a willingness to take on risk, signaling an optimistic market outlook. Image: Goldman Sachs Global Investment Research
Investor Sentiment – U.S. Market Greed/Fear Index A Market Greed/Fear Index reading of 87.83 points to substantial market greed and high investor optimism, which can indicate an overheated market and potentially foreshadow a correction. Image: Real Investment Advice
List of Signals to Watch for a Market Peak Currently, 50% of the 10 indicators for market peaks are triggered, compared to an average of 70% during previous market peaks. This suggests that the market may not have reached its peak yet. Image: BofA US Equity & Quant Strategy
Market Capitalization of Five Largest Companies as Share of S&P 500 Total The five largest companies account for 29% of the S&P 500’s total market capitalization, sparking discussions about diversification. Maintaining a well-diversified portfolio is crucial for effective risk management. Image: Goldman Sachs Global Investment Research
Secular Bull Market – S&P 500 Weekly Chart with the 40-Week MA and 200-Week MA The S&P 500 has reached the 5600s target based on the bullish cup and handle pattern that formed in 2022-2023. The early-2024 breakout to new all-time highs projects further upside potential to the 6150 level. Image: BofA Global Research