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 Forward P/E and 10-Year U.S. Real Yield Is the current disconnect between the valuation of U.S. stocks and the impact of real interest rates on the economy expected to be temporary? Image: Goldman Sachs Global Investment Research
U.S. 10-Year Real Yield (TIPS) The U.S. 10-year real yield hits 14-year high. Will the U.S. equity market hold? Image: BofA Global Research
Valuation – 10-Year U.S. Treasury Real Yield vs. S&P 500 Forward Price/Earnings Ratio Despite higher real rates, the S&P 500’s valuation remains elevated. Image: Morgan Stanley Wealth Management
Gold Price vs. 10-Year U.S. Treasury Real Yield Rising real yields (inverted) did not have a major impact on the price of gold last year. Image: Morgan Stanley Wealth Management
S&P 500 and U.S. 10-Year Real Yield Should investors remain bearish on the S&P 500? Image: Morgan Stanley Research
Real Rates – U.S. Agg. Corporate Avg. Option-Adjusted Spread and 10-Year U.S. Real Yield Rising U.S. real rates could lead to wider credit spreads. Image: Morgan Stanley Wealth Management
Rates – U.S. 10-Year Nominal and Real Yields Goldman Sachs expects U.S. rates will continue to rise. Image: Goldman Sachs Global Investment Research
Gold vs. U.S. 10-Year Real Yields and U.S. Dollar Index – 3-Month Correlation of Weekly Return Generally, U.S. 10-year real yields and the U.S. dollar are negatively correlated with the price of gold. Image: Goldman Sachs Global Investment Research
Manufacturing PMIs and U.S. 10-Year Real Yield (Leading Indicator) Manufacturing PMIs tend to lead U.S. 10-year real yields by 6 months. Image: MarketDesk Research