S&P 500 Risk-Adjusted Returns The S&P 500’s risk-adjusted return in 2025 has been disappointing so far, reflecting a challenging market environment characterized by increased volatility and lower-than-average returns. Image: Goldman Sachs Global Investment Research
Risk-Adjusted Returns Across U.S. Equity Indices The S&P 500’s performance so far this year has been marked by relatively low returns and high volatility, leading to weak risk-adjusted outcomes and signaling a challenging environment for investors seeking favorable risk-reward balances. Image: Goldman Sachs Global Investment Research
Global Market Implied Equity Risk Premiums The low U.S. equity risk premium reflects a market where investors earn little to no additional expected return for taking on the higher risk of stocks compared to bonds. As a result, equity investing becomes more challenging. Image: Goldman Sachs Global Investment Research
Risk Appetite Indicator Level and Momentum Factors The GS risk appetite indicator’s current risk-on signal suggests a constructive market environment, with investors willing to take on risk in anticipation of sustained positive returns and economic stability. Image: Goldman Sachs Global Investment Research
Sentiment – Risk Appetite and Expected U.S. Equity Market Performance U.S. equity investors remain highly risk-averse in June 2025, with bearish short-term return expectations, largely driven by political and macroeconomic uncertainties. Image: S&P Global Market Intelligence
Risk Parity Model Portfolio Weights In risk-parity strategies, the current equity allocation is at the 8th percentile—well below the median—reflecting a preference for safer assets despite the ongoing equity rally. Image: Deutsche Bank Asset Allocation
S&P 500 Equity Risk Premium With the U.S. equity risk premium at historically low levels, equity investors face a more challenging environment, as the risk-reward trade-off is less attractive than before. Image: The Daily Shot
Global Risk Sentiment Indicators Sentiment indicators suggest a “Goldilocks” scenario for risk appetite—investors are cautiously optimistic, but not exuberant or fearful. Image: TS Lombard
S&P 500 Equity Risk Premium With the U.S. equity risk premium at low levels, investors face a difficult landscape in which the risks of equity investments may not be sufficiently rewarded. Image: BCA Research
Risk Appetite Indicator for Different Asset Classes Investors have sharply shifted toward risk aversion due to escalating tariff policies and eroding market visibility. Image: Goldman Sachs Global Investment Research
What Investors Consider the Biggest Risk to Markets Right Now The risk of a trade war triggering a global recession is a pressing concern for investors, as it threatens economic growth, financial stability, and market confidence. Image: Yahoo Finance