ISM YoY and U.S. 2+10-Year Bond Yield YoY (Leading Indicator) The U.S. 2+10-year bond yield YoY (inverted) tends to lead the ISM YoY by 18 months, suggesting that the growth momentum is expected to fade through H1 2022. Image: Nordea and Macrobond
U.S. 10-Year Treasury Yield and Equities: Back to Work / COVID-19 Winners The U.S. 10-year Treasury yield tends to track the pandemic trade. Image: BCA Research
Economic Growth vs. M2 Velocity The decline in economic growth has coincided with a collapse in M2 velocity Image: Real Investment Advice
S&P 500 Index 3-Day Average Returns Are U.S. equity investors ready for a Santa Claus rally this year? Image: LPL Research Click the Image to Enlarge
China’s Credit Impulse as % of GDP Investors should be pleased as Chinese credit impulse is expected to rise. Image: Morgan Stanley Research
Money Market Funds Assets as a % of Global Equity Market Capitalization Cash has been rising in the last few months but remains low as a % of global equity market capitalization. Image: BofA Global Investment Strategy
Markets – Financial Conditions, Global Manufacturing, PMI, S&P 500, U.S. Dollar, 10-Year UST Yield and Fed Fund Rates Should investors brace for tighter financial conditions in 2022? Image: BCA Research
% of Total Flows into Equity Mutual Funds and ETFs since 1996 Historically, January tends to see strong equity inflows. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Next 12 Months P/E Ratio vs. University of Michigan Consumer Expectations Index The valuation of the S&P 500 remains high as consumer expectations fall. Image: Morgan Stanley Wealth Management
Stock Market Breadth – NYSE Stocks Above 200-DMA and S&P 500 Price Relative to 200-DMA Stock market breadth has worsened significantly over the last months. Image: Morgan Stanley Wealth Management
Developed Market Long-Only Flows Why do equity investors hit the sell button? Image: BofA Global Investment Strategy