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 – 10-Year Government Bond Yield (U.S. and Italy, Advanced by 3-Months) and World Equities 12-Month Forward PE (Leading Indicator) The low levels of government bond yields help to explain the world’s stock market valuation. Image: BCA Research
World Equities and U.S. 10-Year Treasury Bond Yield Chart suggesting to sell stocks if the earnings yield spread reaches 2.5%. Image: BCA Research
World Equities and U.S. 10-Year Treasury Yield Chart suggesting that the round trip in U.S. Treasury yields explains the round trip in stock market valuation. Image: Financial Times
Valuation – World Technology Equities Rising bond yields could hurt the tech sector, as it is very sensitive to higher yields. Image: BCA Research
U.S. vs. World ex-U.S. Equities Is it a major turning point for the U.S. stock market? Image: BofA Global Investment Strategy
U.S. Equities and The World: Earnings Growth vs. Multiple Expansion Since the 2009 low, the strong performance of the U.S. markets comes from earnings growth (73%) and multiple expansion (27%). You may also like “S&P 500 Return: Earnings Growth vs. Multiple Expansion.” Image: Goldman Sachs Global Investment Research
USA vs. Global Ex-U.S. Equities (Relative Performance) The U.S. stock market has significantly outperformed the rest of the world over the past decade. How long can the divergence continue? Image: Topdown Charts
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
Performance – MSCI World Ex-U.S. and MSCI U.S. With the dollar weakening, will international stocks (ex-U.S.) continue to outperform U.S. equities this year? Image: The Daily Shot