Bond Yields and Rotation Trade Higher yields are good news for investors. According to BofA, the bull story next year is a reopening rotation story. Image: BofA Global Investment Strategy

S&P 500 EPS Growth Estimates with Potential Lockdowns Goldman Sachs baseline forecast for S&P 500 EPS is $175 by the end of 2021. Image: Goldman Sachs Global Investment Research

Global GDP Forecast – Return to Pre-Covid GDP Path Morgan Stanley expects the global economy will enter the next phase of the V-shaped recovery. Image: Morgan Stanley

Net U.S. Treasury Supply vs. Fed Treasury Purchases U.S. Treasury supply is expected to be much greater than Fed Treasury purchases. Image: BofA Global Research

Federal Reserve Balance Sheet Until 2022 The Fed’s balance sheet is expected to peak at US$9 trillion in 2022. Image: Morgan Stanley Research

U.S. Election Blue Wave – Russell 2000 vs. Nasdaq 1000 Futures and U.S. 10-Year Treasury Yield The blue wave trades collapsed after President Trump’s victory in Florida. Image: BofA Research Investment Committee

Markets – The Big Picture, 2020 vs. 2021 2020 is the year of the coronavirus, a lockdown, a recession, which is bullish for Wall Street. 2021 will see a vaccine, a reopening, a recovery, which…

Global (Equity + Bond) Total Returns Relative to GDP This week, the coronavirus vaccine news sent financial markets to the moon. Image: BofA Global Research

Health Care Stocks – Health Care Sector Excess Returns vs. S&P 500 Around U.S. Presidential Elections The health care sector tends to outperform after Election Day. Image: Goldman Sachs Global Investment Research

Valuation – U.S. Equities vs. Other Markets Is the U.S. stock market too expensive vs. other markets? Image: Gavekal, Macrobond

Stocks – U.S. Equity Return Corresponding with 10 Percentage Point Increase in Probability of Vaccine Mass Distribution by Mid-2021 Value stocks tend to outperform when vaccine expectations improve. Image: Goldman Sachs Global Investment Research