Risky vs. Safe Assets Fund Flows The ongoing preference for safe assets over risky ones indicates investor wariness about market conditions and a focus on capital preservation in uncertain times. Image: Goldman Sachs Global Investment Research
Global Market Implied Equity Risk Premiums The low U.S. equity risk premium points to a challenging investment environment where investors might not be adequately compensated for the risks associated with equity investments Image: Goldman Sachs Global Investment Research
Sentiment – Risk Appetite and Expected U.S. Equity Market Performance Investor risk appetite in the U.S. equity market has continued to decline in March, driven by a worsening economic outlook, fiscal and political uncertainties, and concerns about Federal Reserve policies. Image: S&P Global Market Intelligence
Risk Appetite Indicator Level and Momentum Factors The risk appetite indicator has returned to neutral, indicating that investors are neither overly cautious nor excessively risk-seeking, which can be considered as a balanced approach to investment decision-making. Image: Goldman Sachs Global Investment Research
Survey – What Is the Biggest Risk to the U.S. Exceptionalism Theme? While the U.S. economy has shown resilience, a recent survey highlights sticky inflation as the biggest risk to U.S. exceptionalism. Image: Goldman Sachs Global Investment Research
S&P 500 Equity Risk Premium The current U.S. equity risk premium suggests that U.S. Treasury bonds are becoming more attractive relative to equities, especially for risk-averse investors. Image: Bloomberg
S&P 500 Equity Risk Premium Given the present S&P 500 equity risk premium, investors might not be adequately rewarded for the risks inherent in stock investments, which has increased the relative attractiveness of U.S. Treasury bonds. Image: Morgan Stanley Research
S&P 500 Equity Risk Premium With the S&P 500 equity risk premium hitting multi-decade lows, investors may find bonds more appealing than stocks. Image: Goldman Sachs Global Investment Research
Equity Risk Premium The equity risk premium, at the 94th percentile from 2010 and at the 67th percentile from 2000, suggests that investors may not be receiving adequate compensation for the risks associated with investing in U.S. stocks. Image: J.P. Morgan Equity Macro Research
FMS Investors – Biggest “Tail Risk” Concerns about geopolitical conflict have risen among FMS investors, with 33% now viewing it as the biggest “tail risk” for the global economy, primarily due to its potential negative impact on financial markets and investments. Image: BofA Global Fund Manager Survey
Sentiment – Global Equity Risk-Love The Global Equity Risk-Love indicator, currently at the 68th percentile, has moved out of the euphoria territory, allowing for potential upside as we approach year-end. Image: BofA Predictive Analytics