Short Interest as % of Market Capitalization S&P 500 Median Median short interest in the S&P 500 has dropped to 1.8%, a relatively low figure indicating that market participants are generally optimistic or, at least, not notably bearish about the index’s future performance. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day Bears can’t stop laughing as gold trades near a two-month low. But Goldman Sachs predicts gold will hit a record high of $3,000 per ounce by December 2025, driven by central bank purchases and U.S. interest rate cuts. Have a Great Week, Everyone! 😎
U.S. 10-Year Treasury Yield Around Close Presidential Elections While U.S. elections are significant in shaping economic policy and affecting investor sentiment, they do not consistently drive changes in the U.S. 10-year Treasury yield. Image: Deutsche Bank Asset Allocation
Which Countries Would Be Most Hit by Tariffs? Mexico, Vietnam, and Canada stand to lose the most if the United States implements new tariffs, given their strong economic relationships with the U.S.. Image: Deutsche Bank
U.S. Real Yields While not extreme, the current U.S. real interest rate of about 2% is relatively high, reflecting a restrictive monetary policy aimed at bringing inflation under control. Image: Bloomberg
ISABELNET Cartoon of the Day Being a bear on Earth in 2024 is hard enough, with the S&P 500 gaining 26% YTD including dividends. How about a one-way trip to Mars? It’s so cold there that a bear could hibernate for the entire journey! Happy Friday, Everyone! 😎
EPS Revisions While consensus estimates for 2025 S&P 500 EPS have reverted to modest downward revisions, the overall market sentiment remains cautiously optimistic, supported by improving economic indicators. Image: Goldman Sachs Global Investment Research
S&P 500 Level and EPS Driven by expectations of robust earnings per share growth, Goldman Sachs has set its 12-month S&P 500 price target at 6,300. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day With Republicans achieving a trifecta by winning the House, Senate, and presidency, Democrats will find it difficult to advance their policy agenda. Historically, markets have performed best under a divided Congress. Have a Great Day, Everyone! 😎
U.S. Headline and Core CPI Inflation The latest inflation data for October 2024 indicates that U.S. inflation has remained firm, showing a slight uptick rather than continuing its irregular descent, suggesting that the Fed’s battle against inflation is not yet over. Image: Bloomberg
Total Return Performance of Various Assets Despite Warren Buffett’s skepticism towards gold as an investment, the precious metal has outperformed both U.S. equities and U.S. Treasury bonds over the past 25 years. Image: Deutsche Bank