The Value of Diversification

The Value of Diversification This chart shows that a 60/40 portfolio has slightly outperformed the S&P 500 since 2018. Picture source: Fidelity Investments

Are Small Cap Stocks Overvalued?

Are Small Cap Stocks Overvalued? Small Cap Stocks Valuation: based on the forward PE ratio, the valuation of small cap stocks seems reasonable, with no sign of bubble. You may also like our “Stock Market Valuation.” Picture source: Bianco Research

Is The U.S. Stock Market Overvalued?

Is The U.S. Stock Market Overvalued? S&P 500 Valuation: the chart shows that the U.S. stock market is not cheap. Based on the forward P/E ratio, the S&P 500 is not extremely overvalued either. You may also like our “Stock Market Valuation.” Picture source: Bianco Research

S&P 500 Growth Index / S&P 500 Value Index

S&P 500 Growth Index / S&P 500 Value Index The Value vs. Growth differential has overshot the previous extreme at the height of the Dotcom bubble. You may also like “Will Value Ever Outperform Growth?” and “The Value vs. Growth Differential Has Never Been So Extreme.” Picture source: Bloomberg

U.S. Yield Curve and Growth/Value P/E Ratio

U.S. Yield Curve and Growth/Value P/E Ratio The chart below shows that the shape of yield curve explains nearly 50% of the variation in value vs. growth multiples. Actually, when the U.S. economy is sluggish, investors prefer growth stocks. Picture source: BlackRock, Inc.

Will Value Ever Outperform Growth?

Will Value Ever Outperform Growth? When the U.S. economy is weak, investors prefer growth stocks. But value could outperform again, when the U.S. economy will be stronger. Picture source: Ned Davis Research

Value of U.S. Corporate Bonds by Rating

Value of U.S. Corporate Bonds by Rating Since the Great Recession, the U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. If the U.S. economy goes wrong, this is bad news for investors. Picture source: The Wall Street Journal