Core Inflation and Average Trailing S&P 500 P/E Ratio

Core Inflation and Average Trailing S&P 500 P/E Ratio In periods of low inflation, the P/E ratio is higher. Conversely, high inflation tends to depress the P/E ratio. Image: Goldman Sachs Global Investment Research

Cyclicals to Defensive Stock Ratio and Treasury Bonds

Cyclicals to Defensive Stock Ratio and Treasury Bonds Market internals, the preference for large over small and quality over junk, suggest that the recovery will be modest. Image: Morgan Stanley Research

Risk & Return, and Sharpe Ratio

Risk & Return, and Sharpe Ratio This chart shows risk and return since 1970 and since the 2009 low, including the Sharpe ratio. Image: Fidelity Investments

S&P 500 Forward P/E Ratio

S&P 500 Forward P/E Ratio S&P 500 to 3,550? “Bull markets don’t die of old age” but the forward P/E ratio of the S&P 500 remains at high level. Image: SunTrust Private Wealth Management

Leverage in the U.S.: Households and Corporations

Leverage in the U.S.: Households and Corporations This chart shows the divergence between U.S. non-financial corporations leverage and households leverage. U.S. corporation debt reached a record level of $10.12tn. Image: Gavekal, Macrobond

Valuation – S&P 500 Forward P/E Ratio

Valuation – S&P 500 Forward P/E Ratio Chart showing that the forward P/E ratio of the S&P 500 remains at high level, above its historical range. Image: Fidelity Investments

Valuation – S&P 500 Forward PE Ratio

Valuation – S&P 500 Forward PE Ratio The forward P/E ratio of the S&P 500 is 19.77 and remains at high level. The historical range is about 15.5 to 17. Image: Bianco Research

China: Chinese Debt-to-GDP Ratios by Sector

China: Chinese Debt-to-GDP Ratios by Sector The debt-to-GDP ratio of the non-financial corporate sector accounts for the largest share of China’s debt and declined to 143% of GDP. Image: Pictet Wealth Management

Asset Class and Sharpe Ratio Since 1990

Asset Class and Sharpe Ratio Since 1990 The sharpe ratio is a measure of risk-adjusted return. This year, major asset classes have a positive and high sharpe ratio. Image: Arbor Research & Trading LLC Click the Image to Enlarge