U.S. Equity Sentiment Indicator With the year-end approaching, sentiment is overly stretched, implying that market participants might be excessively optimistic and overconfident in their bullish outlook. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day Historically, inverted yield curves have accurately predicted U.S. recessions, making them a crucial economic indicator. However, this time may be different, regardless of what bears claim. Have a Great Day, Everyone! 😎
2025 Projected U.S. Federal Spending While the idea of cutting $2 trillion from U.S. federal spending is appealing in theory, the practical challenges and political realities make it a daunting task. Image: Morgan Stanley Wealth Management
U.S. 10Y-2Y Yield Curve Slope The U.S. 2s10s yield curve has inverted again, reflecting investor sentiment and expectations about future economic conditions. Image: The Daily Shot
ISABELNET Cartoon of the Day With the S&P 500’s 2024 performance, bears are now extinct in Wall Street – the only place you’ll find them is in the zoo, wondering what went wrong. Have a Great Week, Everyone! 😎
S&P 500 Year-End Return After Rising Over 20% Year-to-Date Historically, after the S&P 500 has risen more than 20%, the average return from now until December 31 tends to be modest, averaging around 1% since the 1970s. Image: Bloomberg
U.S. Equity Index Option Volume As Trump prepares for his second term, the combination of his policy direction and the prevailing market conditions is poised to boost the options market, particularly among retail investors. Image: Bloomberg
Markets – Cumulative S&P 500 Growth vs. Cumulative Real GDP Growth vs. Cumulative S&P Sales Growth The growing disconnect between the U.S. stock market and real economy raises concerns about economic inequality, financial stability, policy challenges and sustainable growth. Image: Real Investment Advice
U.S. GDP Growth Goldman Sachs expresses optimism regarding the resilience of the U.S. economy, forecasting a more favorable GDP growth outlook for 2025 than current consensus estimates. Image: Goldman Sachs Global Investment Research
Valuation Metrics While valuations in the U.S. equity market are undoubtedly high, they are not infallible predictors of market performance, especially in the short term. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day While bears are desperate, bulls are on cloud nine as recent economic indicators point to a potential “no landing” for the U.S. economy, defying expectations of a “soft landing.” Happy Friday, Everyone! 😎