S&P 500 Valuations Based On Forward Operating EPS Easy money and low rates could keep pushing S&P 500 multiples higher, but the risk is that earnings won’t rise fast enough to support them. For the moment, liquidity is driving markets far more than fundamentals. Image: Real Investment Advice
U.S. Presidential Approval Rating vs. Consumer Confidence Trump’s approval exceeds Biden’s late-term lows, but deteriorating consumer confidence’s predictive power signals substantial downside risk as economic anxieties translate into political consequences. Image: Deutsche Bank Asset Allocation
S&P 500 Index – Estimated Next 12-Month Operating Margin The decline in S&P 500 operating margins excluding the Magnificent Seven persists, suggesting that margin headwinds could remain challenging. Image: Morgan Stanley Wealth Management
S&P 500 Operating Margin After the COVID-19 pandemic, the operating margins of companies in the S&P 500 have returned to a state of normalcy, leading to a positive trend of improved profitability and cash flows for these companies. Image: Morgan Stanley Wealth Management
S&P 500 Operating Margins Will the profitability of S&P 500 companies improve in the coming quarters? Image: Morgan Stanley Wealth Management
FAANG Stocks – History of Great Secular De-Ratings Is the de-rating of FAANG stocks far from over? Image: BofA Global Investment Strategy
President Biden’s Approval Rating vs. CPI Inflation Inflation continues to weigh on President Biden’s approval rating. Image: BofA Global Investment Strategy
S&P 500 Operating Profit Margins U.S. profit margins have narrowed as corporate prices have become lower than labor costs. Image: BCA Research
ISM Manufacturing PMI and S&P 500 Operating Margin The Manufacturing Purchasing Managers Index has peaked. Will S&P 500 operating profit margins roll over? Image: Morgan Stanley Wealth Management
S&P 500 Index Operating Margin and U.S. Corporate High Yield Index High yield bonds may suggest a decline in corporate operating margins. Image: Morgan Stanley Wealth Management
Monthly Net Rating Change The credit ratings upgrade cycle continued in September, which is good news for high yield investors. Image: BofA Global Research