Equity Risk Premium (ERP) – S&P 500 Earnings Yield Minus 10-Year Treasury Yield Chart suggesting that the S&P 500 looks attractive relative to bonds. Image: SunTrust Private Wealth Management
FY2 P/E Valuation Premium of Top Five S&P 500 Stocks vs. Rest of Market The valuation of the five largest stocks relative to the rest of the market is not as extreme as it was during the dotcom bubble. Image: Goldman Sachs Global Investment Research
FY2 P/E Premium of Highest vs. Lowest Valuation S&P 500 Firms The dispersion of stock multiples has narrowed but is still wide relative to history, despite the recent value rally. Image: Goldman Sachs Global Investment Research
VIX (Volatility) and Implied Equity Risk Premium The risk of a correction is rising, as the implied equity risk premium is now below what the VIX would suggest. Image: Fidelity Investments
Valuation – P/E Premium of MSCI Growth vs. Value Indices The valuation premium of growth stocks vs. value stocks is close to an all-time high. Image: Goldman Sachs Global Investment Research
FY2 P/E Premium of Sector-Neutral Valuation Quintiles Relative to S&P 500 Median This chart shows S&P 500 sector valuations compared with their historical distribution since 1990. Image: Goldman Sachs Global Investment Research
S&P 500 Equity Risk Premium – 2020 vs. 2009 Same equity risk premium in March 2020 as March 2009, but 30% higher P/E thanks to the level of rates. Image: Morgan Stanley Research
S&P 500 Equity Risk Premium and S&P Bear/Base/Bull Targets Morgan Stanley raises its year-end S&P Bear/Base/Bull targets to 2500/3000/3250, as the equity risk premium could quickly disappear. Image: Morgan Stanley Research
U.S. Equity Risk Premium – Long-Term View This chart suggests that U.S. equities look attractive relative to bonds. Image: Topdown Charts
S&P 500 – Equity Risk Premium This chart suggests that the S&P 500 looks attractive relative to bonds. Image: SunTrust Private Wealth Management