Performance – Price Ratio of Emerging Markets to U.S. Equities Following the global financial crisis, emerging market equities have continuously underperformed U.S. equities, leading to the current situation where the ratio between the two is at 50-years lows. Image: BofA Global Research
Valuation – Real S&P 500 Index with Recessions and S&P 500 Shiller CAPE Ratio While valuations alone do not guarantee market movements, the S&P 500 is still trading at relatively high valuations, which will eventually matter. Image: Real Investment Advice
Insider Transactions Ratio The Insider Transactions Ratio is back in the bullish zone, indicating a positive sentiment among corporate insiders and potentially signaling a favorable outlook for the market. Image: Barron’s
Valuation – Distribution of Sector FY2 P/E Ratios Relative to S&P 500 The energy sector’s discount to the S&P 500 suggests potential investment opportunities for those who believe in the energy sector’s long-term growth prospects. Image: Goldman Sachs Global Investment Research
Valuation – MSCI U.S. Forward 12-Month Price/Earnings Ratio vs. 10-Year U.S. Treasury Real Yield While rising real yields have historically been associated with a decrease in stock market performance, the U.S. equity market has showcased its resilience by delivering impressive returns this year. Image: Morgan Stanley Wealth Management
Valuation – S&P 500 Normalized P/E Ratio At 22x, the S&P 500 is currently trading over 40% above the long-term average, which suggests that investors are willing to pay a premium for stocks in the index. Image: BofA US Equity & Quant Strategy
Valuation – S&P 500 Price/Earnings Ratio The S&P 500 P/E multiple remains above the average level observed since 1990, indicating investors’ willingness to pay more for earnings, possibly due to optimism about future growth. Image: Goldman Sachs Global Investment Research
Are You More Likely to Increase or Decrease Bond Portfolio Duration Over the Coming Days/Weeks? According to JPM, only 33% of their clients are considering decreasing the duration of their bond portfolios, suggesting a preference for potentially increasing or maintaining duration. Image: J.P. Morgan
Performance – Ratio of Russell 2000 Index to Nasdaq-100 Index The small-cap to large-cap stock ratio has reached a record-breaking low, suggesting that small-cap stocks may be undervalued compared to their larger counterparts. Image: Morgan Stanley Wealth Management
Sentiment – Net Bullish Ratio vs. S&P 500 Index In light of the lack of optimism observed among both retail and professional investors, could this sentiment potentially serve as a catalyst for an year-end rally for the S&P 500? Image: Real Investment Advice