Fed Balance Sheet Goldman Sachs predicts the Fed will slow its balance sheet reduction in June 2025 and end quantitative tightening by September, which could influence market liquidity and interest rates. Image: Goldman Sachs Global Investment Research
U.S. Household Equity Ownership vs. S&P 500 Valuations Despite positive economic indicators and strong investor sentiment supporting the current market, the high levels of household equity allocation present risks that could trigger corrections and impact long-term returns. Image: Real Investment Advice
S&P 500 Performance When Higher in January and February When the S&P 500 finishes higher in both January and February, the rest of the year tends to be positive 93.1% of the time, with an average gain of 12.3%, which would likely frustrate those with persistently bearish market views. Image: Carson Investment Research
Magnificent Seven Stocks – Change in Number of Hedge Fund Owners During the fourth quarter of 2024, hedge funds reduced their exposure to the “Magnificent Seven” stocks as the weight of these stocks in portfolios reached record levels. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day Bears hate a strong February, as it is often viewed as a bullish indicator for U.S. stocks. Historically, when the S&P 500 rises in both January and February, it has been a reliable predictor of positive returns for the entire year! Happy Friday, Everyone! 😎
Cumulative Effect of AI Adoption on Productivity Growth The global adoption of AI is expected to significantly boost labor productivity and drive economic growth, potentially leading to substantial increases in GDP. Image: Goldman Sachs Global Investment Research
U.S. GDP Consensus Forecast The U.S. exceptionalism narrative appears fragile. With expectations already high, there’s little room for positive surprises, and weaker economic data could hurt the dollar due to investors’ skewed positioning. Image: TS Lombard
ISABELNET Cartoon of the Day The S&P 500 may be breaking records, but bears are still singing the same old blues. Meanwhile, bulls are riding the market like there’s no tomorrow, which ironically, is what bears are predicting! Have a Great Day, Everyone! 😎
S&P 500 Profit Margin Profit margin growth in the S&P 500 is broadening, extending beyond mega-caps and the tech sector. This trend is expected to continue in 2025, indicating a healthier and more diverse market outlook. Image: Societe Generale Cross Asset Research
Equity Net Long Positioning – Leveraged Funds and Asset Managers Net Future Positions Leveraged funds and asset managers continue to maintain significant net long positions in U.S. equity futures, despite showing some reduced bullishness. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day When asked to choose between the Gulf of America and the Gulf of Mexico, the ocean smiled and replied, “The Gulf of Mexico has been called that since the 16th century. Some names are just timeless!” Happy “Hump” Day, Everyone! 🐫🐪😎