Cumulative Growth of Fed Balance Sheet and S&P 500 Index Cumulative Growth The expansion of the Fed’s balance sheet tends to have a positive impact on the S&P 500 Index, suggesting a correlation between the two (R² = 0.8832 since 2009). Image: Real Investment Advice
Modeled Forward Russell 2000 Returns Conditional on Coincident Real U.S. GDP Growth The performance of small-cap stocks is linked to economic conditions. Weak U.S. economic growth may affect their returns, while strong growth offers potential for solid returns. Image: Goldman Sachs Global Investment Research
Equities – Hedge Fund Client Four Week Average Net Flows Last week, BofA’s hedge fund clients were net buyers of equities for the first time in 10 weeks. Image: BofA Securities
S&P 500 Equal Weight Index The performance of the S&P 500 Equal Weight Index continues to be influenced by factors such as economic conditions, market sentiment, and other macroeconomic indicators. Image: Morgan Stanley Research
S&P 500 Valuation Matrix (12-Month Forward EPS and P/E Multiple) According to Morgan Stanley, U.S. equity market gains in 2024 may stall due to high forward multiples and ambitious earnings forecasts for the next 12 months. Image: Morgan Stanley Wealth Management
Performance – What Is Likely to Be the Best-Performing Asset Class? Historically, equities have demonstrated significant growth and the potential for attractive returns over the long term. Will equities be the best-performing asset class in 2024? Image: Goldman Sachs Global Investment Research
Consecutive Trading Days of Inverted 10Y-2Y U.S. Treasury Yield Curve The anticipation of Fed easing is being driven by the aging of yield curve inversion. Market participants are expecting the Fed to cut rates in order to stimulate economic growth and prevent a potential recession. Image: Morgan Stanley Wealth Management
S&P 500 Performance After a New All-Time High and More Than a Year Without Making One The S&P 500 reaching a new all-time high after more than a year without making one can be seen as a bullish sign that tends to lead to further gains. Image: Carson Investment Research
S&P 500 Sector Return on Equity vs. Price/Book Valuation The energy and consumer staples sectors are trading at levels below ROE-implied valuations. Image: Goldman Sachs Global Investment Research
U.S. Household Financial Assets The total amount of cash held by households in the United States has reached a staggering $18 trillion. Image: BofA Research Investment Committee
Equity – MSCI Japan Market Cap Relative to World Market Cap Considering the improved outlook, attractive valuations, and progress in corporate governance, should investors consider increasing their exposure to Japanese equities? Image: BofA Global Investment Strategy