Correlation Between Value and Momentum The correlation between value and momentum is near record lows. Below this level, value outperformed momentum over the next 250 days (77% of the time) since 1986. Image: BofA Merrill Lynch US Equity & US Quant Strategy
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
Value Stocks vs. Low Volatility Stocks Chart showing the large divergence between value stocks and low volatility stocks, like never before. Image: J.P. Morgan
U.S. Manufacturing and Services Value Added in Percentage of U.S. GDP U.S. manufacturing has decreased over the past decades and is now more than five times smaller than the service sector. Image: Macrobond
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
S&P 500 Value Index at All-Time High Historically, when the S&P 500 Value Index made a new all-time high for the first time in 200+ days, it went higher 6 months later. Image: Sentimentrader
Deal Value of U.S. IPOs Goldman Sachs expects $25 billion of U.S. IPOs in 2020, less than the $40 billion average since 1990. Image: Goldman Sachs Global Investment Research
MSCI World Growth Index vs. MSCI World Value Index Over the past decade, global value stocks have remained in the shadow, while the sun has shone on global growth stocks. Image: Financial Times
U.S. Retail Sales and Food Services vs. Fair Value Model After disappointing U.S. retail sales in September, this chart provides a good forward guide for U.S. consumer spending. The Fair Value Model leads consumption and includes: ASA Staffing Index (temps), spread between good unemployment (job leavers) and bad unemployment (job losers), and forward-looking income expectations.…
Growth Stocks vs. Value Stocks and Large-Cap vs. Small-Cap Around first rate cut, when growth stocks and large-cap stocks outperform, it does not suggest a recession is coming. Image: Goldman Sachs Global Investment Research
