Valuation – Real Assets vs. Financial Assets The price of real assets relative to financial assets being very low suggests that investors should consider owning more real assets, such as precious metals and real estate. Image: BofA Global Research
Valuation – Real S&P 500 Index with Recessions and S&P 500 Shiller CAPE Ratio The S&P 500 is trading at relatively high valuations, which will eventually matter. Image: Real Investment Advice
Valuation – S&P 500 Forward P/E and 10-Year U.S. Real Yield The current valuation of U.S. stocks does not accurately reflect the impact of real interest rates on the economy. Will the valuation disconnect be temporary? Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Median Fwd P/E How long will the valuation gap between the S&P 500 equal-weighted index and the top seven stocks last? Image: BofA US Equity & Quant Strategy
Forward 10-Year Real Returns and CAPE Valuations Will the U.S. stock market deliver lackluster returns over the next 10 years? Image: Real Investment Advice
Valuation – 12-Month Forward P/E Ranges (MSCI Regions) The current valuations of the U.S. stock market are significantly higher than the historical average. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 NTM P/E Ratio The NTM P/E ratio of the S&P 500, excluding the 7 largest stocks, is at a relatively reasonable level of 17x. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Forward P/E The S&P 500 trades at a forward P/E ratio of 17x excluding the 7 largest stocks, which is relatively reasonable. Image: Goldman Sachs Global Investment Research
Valuation Metrics S&P 500 valuation metrics remain elevated by historical standards. Image: Goldman Sachs Global Investment Research
S&P 500 Valuation – Blended P/E Ratio and Equity Risk Premium Are investors compensated enough for the risk of owning U.S. equities rather than U.S. Treasury bonds? Image: Topdown Charts