Sentiment – Risk Appetite and Expected U.S. Equity Market Performance

Sentiment – Risk Appetite and Expected U.S. Equity Market Performance U.S. equity investors are embracing risk again in February. This shift in sentiment can be attributed to a more positive economic outlook, suggesting a promising future for the equity market. Image: S&P Global Market Intelligence

FMS Investors – Biggest “Tail Risk”

FMS Investors – Biggest “Tail Risk” FMS investors perceive higher inflation as the biggest “tail risk” for the global economy, reflecting their concern about the potential negative impact on financial markets and investments. Image: BofA Global Fund Manager Survey

Sentiment – Global Equity Risk-Love

Sentiment – Global Equity Risk-Love The Global Equity Risk-Love indicator, which stands at the 83rd percentile, suggests that investors should exercise caution and effectively manage the increased risk in global equity markets. Image: BofA Predictive Analytics

Risky vs. Safe Assets Fund Flows

Risky vs. Safe Assets Fund Flows Risky vs. safe assets fund flows are neutral, suggesting that investors are adopting a wait-and-see approach, possibly indicating a lack of strong conviction in either riskier or safer assets at the moment. Image: Goldman Sachs Global Investment Research

Risk Appetite Indicator for Different Asset Classes

Risk Appetite Indicator for Different Asset Classes The strong risk appetite of investors for credit investments indicates their confidence in the potential returns compared to other investment options. Image: Goldman Sachs Global Investment Research

Risk Appetite Indicator Level and Momentum Factors

Risk Appetite Indicator Level and Momentum Factors The risk appetite indicator remains positive, indicating that investors are still exhibiting a level of risk-taking behavior in the market. Image: Goldman Sachs Global Investment Research

S&P 500 Valuations – Combined P/E Ratio and Equity Risk Premium

S&P 500 Valuations – Combined P/E Ratio and Equity Risk Premium Given the S&P 500’s high P/E ratio, should investors be cautious about U.S. equities? And do they receive adequate compensation for the risk associated with owning U.S. equities rather than bonds? Image: Topdown Charts

VIX and Geopolitical Risk Index

VIX and Geopolitical Risk Index The VIX tends to be sensitive to geopolitical events and can serve as an indicator of market sentiment during times of heightened geopolitical risk. Image: Goldman Sachs Global Investment Research

Biggest Downside Risk to the U.S. Dollar over the Next 6 Months

Biggest Downside Risk to the U.S. Dollar over the Next 6 Months The U.S. dollar is considered to be most vulnerable to the downside risk of a hard landing scenario, which is widely regarded as the primary concern that could negatively impact its value. Image: BofA Global Research

U.S. Equity Risk Premium – Long-Term View

U.S. Equity Risk Premium – Long-Term View Should investors approach U.S. equities with caution due to the significant decline in the equity risk premium, which stands well below its historical average? Image: Topdown Charts