Performance – Value vs. Growth

Performance – Value vs. Growth The U.S. market is experiencing outperformance in growth sectors driven by innovation and strong earnings, whereas value sectors dominate outside the U.S. due to slower earnings growth and differing economic dynamics. Image: Goldman Sachs Global Investment Research

10-Year U.S. Treasury Yield Fair Value

10-Year U.S. Treasury Yield Fair Value The fair value model for the 10-year U.S. Treasury yield, based on market variables, suggests a fair value close to 3.9%. Image: Deutsche Bank

After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added

After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added While U.S. corporate profits fell in Q1 2025 due to higher costs and economic uncertainty, they remain historically high, reflecting both the strength and the vulnerability of large companies in the current economic climate. Image: Bloomberg

DXY U.S. Dollar Index vs. Nasdaq Composite / MSCI World Value

DXY U.S. Dollar Index vs. Nasdaq Composite / MSCI World Value Over the past two years, U.S. growth stocks—known for their sensitivity to currency fluctuations—have exhibited a strong correlation with the U.S. dollar. Image: Gavekal, Macrobond

U.S. Stocks – Magnificent Seven Market Value as a Percent of S&P 500 Market Value

U.S. Stocks – Magnificent Seven Market Value as a Percent of S&P 500 Market Value The “Magnificent Seven” stocks have significantly influenced the S&P 500, now accounting for 34% of its market capitalization, reflecting their dominance and the concentrated risk in the market. Image: Goldman Sachs Global Investment Research

Valuation – Relative Forward P/E of Russell 1000 Value vs. Growth Indices

Valuation – Relative Forward P/E of Russell 1000 Value vs. Growth Indices The current landscape for value and growth investing reveals a significant and persistent valuation gap, with value stocks trading at lower prices relative to their growth counterparts. Image: BofA US Equity & Quant Strategy

Performance – Large Cap Growth vs. Small Cap Value

Performance – Large Cap Growth vs. Small Cap Value Large-cap growth stocks are outperforming small-cap value stocks at a level not seen since the dot-com bubble era. Historical patterns and the potential for economic recovery indicate that this trend may change in the long term. Image: BofA Global Investment Strategy

U.S. Value Flows

U.S. Value Flows Over the past 18 months, outflows from U.S. value funds have been substantial, totaling a record $100 billion. Image: BofA Global Investment Strategy

MSCI World Value vs. Growth

MSCI World Value vs. Growth Given the current market dynamics, will the outperformance of growth stocks over value stocks be reversed in the future, with value stocks potentially taking the lead? Image: Goldman Sachs Global Investment Research