Share of S&P 500 Stocks Underperforming the Index Despite the strong performance of the S&P 500 index in 2023, more than 70% of the individual stocks within the index underperformed, indicating that the overall gains…
Conference Board Consumer Confidence, Twitter Sentiment Index, University of Michigan Consumer Sentiment Despite strong economic performance, U.S. consumer confidence has shown improvements but has not yet returned to pre-pandemic levels, indicating that the recovery process…
S&P 500 with Start of Rate Cut Cycles and U.S. Recessions Historically, the S&P 500 has tended to post positive returns in the 12 months following the Fed’s first rate cut, unless the U.S. economy…
U.S. Bank Reserves as a Percent of GDP As bank reserves relative to GDP gradually return to normal levels, they will no longer contribute to the upward momentum of equity valuation multiples. Image: Morgan Stanley…
Buybacks – Share of S&P 1500 Companies Paying a Dividend or Repurchasing Stock Over the years, the share of S&P 1500 companies engaging in share repurchases has surged. In 1995, only 3% participated, while in…
Share of S&P 1500 Companies by Returning Cash to Shareholders Strategy Most S&P 1500 companies are returning cash to shareholders through both dividends and buybacks, which can significantly boost shareholder returns. Image: Goldman Sachs Global…
U.S. Dollar Index (DXY) BofA predicts that the U.S. dollar has the potential to rally to $105.50/$106 in Q1 2024. A stronger U.S. dollar often poses challenges for U.S. stocks. Image: BofA Global Research
S&P 500 Earnings Yield – UST 3-Month Yield Historically, when the cash yield exceeds the earnings yield, this is often seen as a headwind for equities, as investors tend to prefer allocating their funds to…
IG + HY Bond Fund Flows Despite the potential risks associated with investing in IG and HY bond funds, continued strong inflows to these funds indicate a positive sentiment among investors. Image: BofA Global Investment…
GWIM Flows to Debt The significant rate at which BofA’s private clients are selling debt may reflect a change in investment strategy. Image: BofA Global Investment Strategy