Valuation and Global Asset Price Cycle

Valuation and Global Asset Price Cycle Interesting chart showing the current average overvaluation estimates across equities, bonds and house prices in major advanced economies. Image: Oxford Economics

U.S. Market Valuation

U.S. Market Valuation Chart suggesting that the U.S. stock market seems expensive in a number of ways. Image: Paolo Cardena

S&P 500 Valuation Dispersion on Forward P/E – Value vs. Growth

S&P 500 Valuation Dispersion on Forward P/E – Value vs. Growth When valuation dispersion was this high or higher, value stocks tended to outperform growth stocks (95% of the time) over the next 12 months. Image: BofA Merrill Lynch US Equity & US Quant Strategy

Valuation – S&P 500 Forward Price-to-Earnings

Valuation – S&P 500 Forward Price-to-Earnings Is the S&P 500 valuation stretched? Valuations are currently the highest since early 2018. Image: SunTrust Private Wealth Management

Valuation – Commodity Prices Relative to S&P 500

Valuation – Commodity Prices Relative to S&P 500 Chart suggesting that commodity prices have never been more depressed relative to stocks, since the late 90’s. Image: U.S. Global Investors

Valuation – Value vs. Momentum Stocks

Valuation – Value vs. Momentum Stocks Chart suggesting that value stocks are currently very cheap vs. momentum stocks. The relative forward P/E of value vs. momentum is at two standard deviations below the average. Image: BofA Merrill Lynch US Equity & Quant Strategy

Forward P/E of S&P 500 Top and Bottom Valuation Quintiles

Forward P/E of S&P 500 Top and Bottom Valuation Quintiles The forward P/E of the top quintile of S&P 500 companies by valuation is 27 (avg: 20) vs. 11 (avg: 10) for the lowest quintile. Image: Goldman Sachs Global Investment Research