VIX (Volatility) and Implied Equity Risk Premium

VIX (Volatility) and Implied Equity Risk Premium The risk of a correction is rising, as the implied equity risk premium is now below what the VIX would suggest. Image: Fidelity Investments

S&P 500 Equity Risk Premium – 2020 vs. 2009

S&P 500 Equity Risk Premium – 2020 vs. 2009 Same equity risk premium in March 2020 as March 2009, but 30% higher P/E thanks to the level of rates. Image: Morgan Stanley Research

Credit Risk – U.S. BBB Spreads

Credit Risk – U.S. BBB Spreads Outside of GFC and the Great Depression, U.S. BBB spreads have never been higher. Image: Deutsche Bank

Risk of Small Business Closure

Risk of Small Business Closure More than 30% of US small businesses are at risk, if business disruption caused by the coronavirus pandemic persists for two months. Image: CNBC

S&P 500 – Equity Risk Premium

S&P 500 – Equity Risk Premium This chart suggests that the S&P 500 looks attractive relative to bonds. Image: SunTrust Private Wealth Management

U.S. Jobs at Risk of Short-Term Layoffs

U.S. Jobs at Risk of Short-Term Layoffs Coronavirus outbreak and complete lockdowns put 37 million jobs at risk in the United States. Image: Statista

S&P 500 Performance and Risk Appetite Indicator

S&P 500 Performance and Risk Appetite Indicator This chart suggests that the S&P 500 has historically recovered, after the Risk Appetite Indicator falls below -2. Image: Goldman Sachs Global Investment Research