Performance of U.S. vs. Rest of World Equities Investing in U.S. corporations is like betting on a horse that always finishes the race—sure, it might stumble, but it usually crosses the finish line ahead of the pack! Image: BlackRock Investment Institute
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
Returns – Global Equities vs. Global Bonds vs. Gold vs. World Portfolio Since 1950, the world portfolio has earned a real 4.1% annual return — global equities led with 7.3%, gold lagged at 2.5%, and global bonds barely reached 1.8%. The long-run verdict is clear: equities have won. Image: Goldman Sachs Global Investment Research
Valuation – U.S. Equities vs. Rest of World – 12-Month Forward PE Ratios U.S. equities trade at historically high valuations versus global peers, with the premium widening. While strong fundamentals support this, it also poses risks if growth expectations decline or macroeconomic conditions worsen. Image: Deutsche Bank
Seasonality Trends in MSCI AC World Index (Global Equities) July has historically been a strong month for global equities, offering opportunities for investors to capture potential gains. Image: BofA Global Quantitative Strategy
Global Equities – MSCI AC World Mid- and Large-Cap Index Are emerging market equities poised for continued growth? Image: Gavekal, Macrobond
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