S&P 500 Index: Recession Rate Cuts vs. Precautionary Rate Cuts This chart shows what the U.S. market has done after first Fed cut in a business cycle. The current path follows precautionary rate cuts and…

MSCI Europe P/E and U.S. Nominal 10-Year Yield Chart showing how nominal yields usually affect stock market valuation. Image: Barclays Research

Outlook for Portfolio Returns Over the Next 10 Years Chart suggesting anemic returns over the next 10 years, due to low yields, low growth and low inflation expectations. Image: Morgan Stanley Research

Crude Oil vs. Managed Money Short Positions Chart suggesting that oil could rise, when managed money short positions are so extreme. Image: Ned Davis Research, Stifel

Fed Funds Rate and Neutral Rate Chart suggesting that the Fed funds rate is below the neutral rate. Image: Stifel

S&P 500 Cyclicals Relative to Defensives Chart suggesting that S&P 500 cyclicals could outperform defensives in 2020, based on higher U.S. nominal GDP growth. Image: Stifel

Central Banks Balance Sheet Growth The unprecedented growth in central banks’ balance sheets is distorting financial markets. Image: BofA Merrill Lynch Global Research

Local Currency Returns and Return to Vol Ratios in YTD 2019 Chart showing what investors should have bought this year. Image: Goldman Sachs Global Investment Research

Forward P/E of S&P 500 Top and Bottom Valuation Quintiles The forward P/E of the top quintile of S&P 500 companies by valuation is 27 (avg: 20) vs. 11 (avg: 10) for the lowest quintile.…

Rallies in World Cyclicals vs. Defensives Since the global financial crisis, average rallies in world cyclicals vs. defensives have lasted only four months. Image: Goldman Sachs Global Investment Research

S&P 500 Index Return and Chinese Calendar Year The year of the Pig seems to be strong for U.S. equities this year. Image: Ryan Detrick, LPL Financial LLC