Valuation – World Technology 12-Month Forward Earnings Yield and 10-Year Treasury Bond Yield Plus 2.5 Tech stocks are less attractive, as the world tech 12-month forward earnings yield is still below the 10-year Treasury bond yield plus 2.5. Image: BCA Research
Inflation – UN Food and Agriculture World Food Price Index Will global food prices continue to soar? Image: BofA Global Investment Strategy
Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM, MSCI World Earnings sentiment remains positive. Image: Goldman Sachs Global Investment Research
Performance – S&P 500 vs. MSCI World vs. MSCI World Ex-US Can the S&P 500 continue to outperform global equity markets over the next 10 years? Image: Financial Times
Negative Real Rates Around the World Most economies in the world experience negative real rates. Image: Gavekal, Macrobond
Valuation – MSCI ACWI World Market Capitalization to Global GDP Ratio The MSCI ACWI World Market Capitalization to GDP ratio is at record high. Image: Morgan Stanley Research
MSCI World and World Technology 12-Month Forward Earnings Yield Minus U.S. 10-Year Bond Yield Over the last 4 years, the MSCI World tended to decline when the yield gap was close to 2%. Image: Societe Generale Cross Asset Research
World Equities Performance – Capital Intensive Companies vs. Non Capital Intensive Companies Equity markets tend to penalize capital-intensive companies. Image: Goldman Sachs Global Investment Research
Valuation – Cyclical Adjusted P/E Ratio – MSCI U.S. vs. MSCI World Ex-U.S. Are global equities ex-U.S. a bargain? Image: Gavekal, Macrobond
World Trade Volume of Goods and Services The International Monetary Fund expects global trade to rebound in 2021 and 2022. Image: Bloomberg