Author: isabelnet

Short Interest % of Market Capitalization S&P 500 Median S&P 500 short interest is on the decline. Image: Goldman Sachs Global Investment Research

Valuation – Emerging Market and Developed Market Countries – PE10 vs. 10-Year Forward Returns Valuation matters over time in the stock market. This chart shows the PE10 vs. subsequent 10-year CAGR (Compound Annual Growth Rate). Image: Topdown Charts

Flows for the Broad U.S. Asset Classes: Stocks and Bonds Inflows into stocks and bonds this week (U.S. domiciled funds only). Image: BofA Global Research

Dow Jones Industrial Average Historical Performance Around Waterfall Declines vs. All Cases Since 2020 The rally since March low is stronger than any of the 13 previous post-waterfall bounces. Image: Ned Davis Research

Secular Bull Market – The S&P 500 and Its 200-Week Moving Average The 200-week moving average is a strong support level, suggesting that the secular bull market is still intact for the time being. Image: Credit Suisse

S&P 500 and Market Recoveries Historically, after a crisis, market recoveries came largely from multiple expansion. Image: Gavekal, Macrobond

Top 5 Companies % of S&P 500 Market Capitalization The S&P 500 is currently more concentrated in the five largest stocks than during the dotcom bubble. Image: BofA Global Investment Strategy

U.S. Treasury Issuance and Fed QE What’s the impact of quantitative easing? The Fed is now expected to buy double the amount of U.S. Treasury net issuance. Image: Deutsche Bank Global Research

S&P 500 Total Return Index and Actual Forward 10-Year Rate of Return This chart suggests that the long-term return forecast is around 3.5% now vs. 8% p.a. at March bottom (R² = 0.91). Image: Hondo Tomasz

Impact on U.S. Small Business Revenue Since Coronavirus Became a Widespread Concern in Early March Around 59% of U.S. small businesses saw revenue drop by 75% or more due to the coronavirus pandemic. Image: CNBC

U.S. Unemployment Insurance Initial Claims Goldman Sachs expects initial claims to remain very high over the next several weeks. Image: Goldman Sachs Global Investment Research