Inflation – U.S. CPI Forecasts With inflation high, the Fed’s interest rate cut decisions require a delicate balance between price stability, economic expansion and employment support. Image: BofA Global Investment Strategy
S&P 500 – Largest 7 Stocks vs. Rest of Index Investing heavily in the largest seven U.S. stocks in a portfolio tends to underperform the rest of the S&P 500 index over the long term,…
Valuation – S&P 500 Long-Term P/E Ratio Valuation, particularly in the context of the S&P 500’s long-term P/E ratio, is a significant consideration for investors. The high current ratio suggests potential overvaluation. Image: The Daily…
U.S. Domiciled Funds: Active vs. Passive as a % of Assets Under Management Passive accounts for 54% of all U.S. domiciled fund assets, highlighting the significant growth and popularity of passive investing strategies in recent…
Cumulative U.S. Equity Fund Flows from 1 Year Before to 1 Year After U.S. Presidential Elections Since 2004 Positive flows into U.S. equity funds could help support further gains in the S&P 500 after the…
U.S. 2-Year Treasury Yield – Weekly Chart Technical analysis suggests that the 2-year U.S. Treasury yield is projected to decline by the end of 2024, with a potential target between 3.50% and 3.29%. Image: BofA…
Percentage of S&P 500 Stocks Above 200-Day Moving Average The percentage of S&P 500 stocks above their 200-day moving average is showing signs of a bearish divergence, which can be an early warning signal of…
The Five Largest Stocks in the S&P 500 The concentration of the S&P 500 in the 5 largest stocks is higher than it was 60 years ago, which is considered a potential risk, as it…
Fed – The Distribution of FOMC Voters Should investors bet for a hawkish Fed policy tone in 2025, as the central bank remains focused on its fight against persistent inflation, even if it means risking…
Global Policy Rate Hikes In June 2024, for the first time since October 2020, no major central banks around the world raised interest rates, marking a significant shift in global monetary policies. Image: BofA Global…
S&P 500 Index Relative to Historic Valuation Ranges The fact that U.S. markets are trading significantly above their typical valuation levels suggests that the expected outcomes may not be as optimistic as many investors anticipate.…