Emerging Markets Exports Value and MSCI Emerging Markets 12m Trailing EPS Chart suggesting that EM corporate profits are linked to the global trade cycle. Image: Gavekal, Macrobond
Valuation – Largest Company in Terms of Market Value in the S&P 500 At current level, Apple is the largest publicly traded U.S. company. Image: Financial Times
Cumulative Flows into Growth ETF vs. Value ETF Performance has been in favor of growth this year, despite flow into value. Image: BofA Securities
Momentum to Value Rotation The rotation into value suggests a rebound in global economic growth, not a recession. Image: BofA Merrill Lynch US Equity & US Quant Strategy
S&P 500 Price to Book Value vs. Future Returns The current S&P 500 price to book value suggests that equity market returns will be low over the next 10 years (R² = 0.86). Image: Tomasz Hońdo
How Has the Value of the Stock Market Changed since the Beginning of the Year? This chart suggests that most Americans are not aware of market movements. Only 40% of respondents reported that the value of the stock market has increased this year. Image: Financial Times
The Value of Diversification – 60/40 Portfolio vs. S&P 500 This chart shows the return and volatility of a 60/40 portfolio vs. S&P 500. Image: Fidelity Investments
MSCI World Value vs. Growth Chart showing the record outperformance of Growth vs. Value since the Great Financial Crisis. Image: Goldman Sachs Global Investment Research
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