Valuation – Real Assets vs. Financial Assets

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 – S&P 500 Forward P/E and 10-Year U.S. Real Yield

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

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

Valuation – S&P 500 NTM P/E Ratio

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

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

Valuation Metrics S&P 500 valuation metrics remain elevated by historical standards. Image: Goldman Sachs Global Investment Research