Largest Contributors to the YTD Change in NTM EPS for MSCI AC World Most of the Technology sector’s positive earnings revisions have come from its more cyclical areas, particularly semiconductors and related hardware. Image: Goldman Sachs Global Investment Research
MSCI AC World EPS Wall Street is pushing up MSCI AC World EPS targets for 2026 and 2027, betting AI’s surge will lift margins instead of sparking another capex boom-and-bust. So where’s the bubble: in earnings or just the hype? Image: Goldman Sachs Global Investment Research
Earnings Sentiment – S&P 500, STOXX 600, Topix, MSCI EM Strong U.S. earnings expectations and resilient corporate profits are keeping recession fears at bay and bolstering market optimism.. Image: Goldman Sachs Global Investment Research
MSCI World Sector/Style Valuations Valuations are rich across sectors and styles, leaving investors with barely any cushion. In this market, even a small shift in sentiment can send prices sliding with little support below. Image: Goldman Sachs Global Investment Research
Valuation – MSCI World 12-Month Forward PE With global equities trading at 18.5 times forward earnings, valuations look stretched by historical standards. Not a bubble, but far from cheap. Image: Goldman Sachs Global Investment Research
Valuations – Software vs. World ex. TMT and Technology vs. World TMT Valuations in global tech and software have narrowed sharply, with forward P/Es at their lowest level relative to world equities in more than five years. That could mark a buying window, assuming earnings momentum stays intact. Image: Goldman Sachs Global Investment Research
Valuation – PEG Ratio Between the U.S. and the Rest of the World The valuation premium of U.S. equities versus the rest of the world, through the PEG lens, has narrowed in recent months. But U.S. growth expectations still justify some of that premium. Image: Goldman Sachs Global Investment Research
Distributions od Returns of World Tech vs. World ex. TMT The tech sector is facing a valuation reset this year after a long stretch of outsized gains fueled by AI enthusiasm and momentum trades. In relative terms, few eras over the past fifty years have been tougher for tech stocks. Image: Goldman Sachs Global Investment…
U.S. vs. Rest of World – 12-Month Forward Earnings Per Share U.S. corporate earnings have led the pack in recent years, but overseas profits are finally closing the gap. That momentum shift could mark an important turning point, one that opens opportunities in international large-caps. Image: Deutsche Bank Research
Relative Equity Market Performance – USA vs. Rest of the World U.S. equities have lagged global peers recently, posting their steepest relative underperformance in 15 years. The leadership baton has passed to cheaper, more cyclical markets overseas, pointing to brighter days for the global cycle. Image: Deutsche Bank Research
World Technology Earnings Driven by innovation and a digital‑first economy, tech earnings continue to outpace global peers, with momentum still running strong. Digital transformation remains a powerful growth engine. Image: Goldman Sachs Global Investment Research