Valuations – 12-Month Forward P/E Ranges (MSCI Regions) Despite the pullback, U.S. and global equity valuations remain elevated, with earnings momentum carrying the load. As long as companies keep delivering, those rich multiples may continue to hold up. Image: Goldman Sachs Global Investment Research
Relative Regional Weights Within Global Equities Wall Street’s dominance isn’t a fresh story, but it’s hitting a new peak. Since the financial crisis, U.S. markets — supercharged by tech, record earnings, and a relentless dollar — have pulled far ahead of the pack. Image: Goldman Sachs Global Investment Research
12-Month Forward ROE Ranges for Different MSCI Regions A higher ROE points to stronger profitability—and often justifies a premium—but U.S. equity valuations also hinge on growth expectations, risk sentiment, liquidity, and investor psychology. Image: Goldman Sachs Global Investment Research
Foreign Revenues of S&P 500 Companies While S&P 500 companies are broadly exposed to global markets, the majority of their sales—and thus, much of their operational and macroeconomic risk—remains tied to the U.S. economy. Image: Goldman Sachs Global Investment Research
Nominal GDP as % World for Important Countries/Regions The Global South is rapidly emerging as the primary driver of global demographic and economic growth. For investors and businesses, it presents expanding markets and new opportunities that will be increasingly difficult to ignore. Image: Deutsche Bank
Foreign Ownership of U.S. Equities by Region European investors, major holders of U.S. stocks, could impact valuations if trade tensions rise, potentially shifting focus to European markets benefiting from fiscal stimulus and increased defense spending. Image: Goldman Sachs Global Investment Research
Equity Sectoral and Regional ETF Flows Materials, energy and healthcare ETFs are still experiencing notable outflows, leading to a decrease in investor interest. Image: J.P. Morgan
Cumulative Global Equity Fund Flows Across Regions In 2024, U.S. equities have seen notable inflows, indicating a resurgence of investor confidence despite ongoing concerns about valuations. Image: Goldman Sachs Global Investment Research
Performance – Regional Banks vs. Large Banks Would investors be better served by focusing on quality large bank names rather than trying to find value in the regional banking sector at this time? Image: BofA Global Investment Strategy
Performance – S&P Regional Banks Index vs. S&P 500 Regional banks and the equal-weighted S&P 500 have recently reached new relative lows, a concerning trend in the financial market. This trend is noteworthy given the recent S&P 500 performance. Image: Morgan Stanley Research
Cumulative Inflows to Equities by Region Will outflows from european equities persist? Image: BofA Global Investment Strategy