Average 12-Month Forward S&P 500 Returns by Equity Risk Premium Tranche According to the chart, the current equity risk premium suggests strong gains in the S&P 500 over the next 12 months. Image: SunTrust Private Wealth Management
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
Central Banks – Market Risk Trend and Economic Policy Trend Chart suggesting that risk assets’ sensitivity to political risks has been neutralized by central banks’ QE and dovish monetary policy stance. Image: Image: BofA Global Research
Asset Classes and Inflation Risks Chart suggesting that major asset classes do not take inflation risks into account. Image: Arbor Research & Trading LLC
Simple U.S. Risk Parity Strategy Risk parity strategies performed very well this year. Image: Goldman Sachs Global Investment Research
Equity Risk Indicator and S&P 500 The equity risk indicator from Morgan Stanley is now in exuberant territory. Image: Morgan Stanley Research
The Market Risk Indicator (Global Financial Stress Index) According to BofAML, the global financial stress index is a more accurate market risk indicator than VIX. Image: BofA Merrill Lynch Global Research
Global Debt by Sector and Recession Risk With global growth slowing, this chart suggests that the biggest recession risk is corporate deleveraging. Image: BofA Merrill Lynch Global Investment Strategy
U.S. Corporate Bond Market Risk It is different this time. Since the 2008 regulations change, corporate bond market-risk-taking has moved from banks to investors in mutual funds. Image: Swedbank Research
S&P 500 Equity Risk Premium: Earnings Yield Minus 10-Year Treasury Yield Chart suggesting that the S&P 500 equity risk premium looks attractive. Image: SunTrust Private Wealth Management