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
Valuation – U.S. Equities vs. Rest of World – 12-Month Forward PE Ratios Given the current high valuation of U.S. equities, diversification—both geographically and across sectors—remains a critical strategy for managing risk and maintaining portfolio stability. 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
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