Discretionary vs. Systematic Equity Positioning With systematic strategies remaining strong at the 74th percentile and discretionary investors still wary at the 37th percentile, markets have room to edge higher. Image: Deutsche Bank Asset Allocation
Earnings Growth – Mag 7 and S&P 500 ex-Mag 7 This year, the Magnificent Seven are set to deliver earnings growth of roughly 25%, more than double the 11% expected from the rest of the S&P 500. Image: J.P. Morgan Asset Management
MSCI World Sector/Style Valuations With valuations running hot across sectors and styles, investors are turning more selective. Even so, a few pockets of value still glimmer beneath the surface. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Revision Breadth The relationship isn’t perfect, but S&P 500 EPS revision breadth has often led market moves, showing a strong historical link with the index’s six‑month trailing returns. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Shiller Cyclically-Adjusted P/E Ratio vs. Model-Predicted P/E Ratio U.S. equities look expensive relative to both their own history and what today’s macro backdrop would normally justify. In past cycles, such stretches of pricey valuations have often been followed by years of subpar returns. Image: Goldman Sachs Global Investment Research
S&P 500 YoY EPS Growth Wall Street’s outlook for 2026 is bright, with analysts eyeing a 15% rise in S&P 500 earnings. While forecasts sound promising, markets often have surprises in store. Image: Goldman Sachs Global Investment Research
Risk Appetite Indicator Level and Momentum Factors Goldman Sachs’s Risk Appetite Indicator stays high, showing confidence remains strong across the market’s major players. Image: Goldman Sachs Global Investment Research
Sector Weights in the S&P 500 U.S. defensive sectors, excluding pharma and biotech, remain near their lowest share of the S&P 500 since 1990, even after a tech-led rotation nudged investors to trim some of their technology exposure. Image: Deutsche Bank
Investor Sentiment – U.S. Market Greed/Fear Index The bulls are holding their ground, with the Greed and Fear Index flashing 75.86. The rally still has its fans, but a consolidation wouldn’t surprise anyone. Image: Real Investment Advice
Factset S&P 500 Annual Bottom Up EPS Actual and Estimates Forecast upgrades for 2026 and 2027 keep rolling in, giving the S&P 500 another reason to push higher. The bulls still have the wind at their backs, and momentum isn’t showing any signs of slowing. Image: Carson Investment Research
Consolidated Equity Positioning Sitting at the 52nd percentile, consolidated equity positioning is slightly overweight, leaving room for potential upside. Image: Deutsche Bank Asset Allocation