S&P 500 vs. Forward Earnings Estimates While the outlook for corporate earnings in 2025 remains positive, the elevated market valuations mean that companies will need to deliver on these high expectations to sustain the bull market. Image: Yahoo Finance
Cyclicals vs. Defensives Performance Cyclical sectors’ strong performance suggests economic optimism, but investors must be cautious about potential overvaluation and risks, especially when buying cyclical stocks late in the economic cycle. Image: Goldman Sachs Global Investment Research
Nominal S&P 500 Earnings Growth – Nominal GDP Growth The rapid acceleration of U.S. corporate earnings growth over the past three decades, which has outpaced the broader U.S. economy, is a key factor behind today’s high market valuations—a trend that may persist. Image: Deutsche Bank
Global Equities Around Fed Cut With And Without Recession Strong performance in global equities is common after the Fed’s initial rate cut, particularly when the economy remains recession-free for the subsequent 12 months. Image: Goldman Sachs Global Investment Research
2 Year Calendarized S&P 500 Performance Starting in January The remarkable rise in the S&P 500 over the past two years is one of the strongest since 1928, bringing joy to market bulls. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day The Panama Canal is not for sale. Trying to buy it? That’s a canal-tastrophic idea! Have a Great Day, Everyone! 😎
CEO Confidence vs. S&P 500 Annual % Change Strong CEO confidence typically bodes well for U.S. stocks, as there’s a correlation between executive optimism and annual market performance. Image: Real Investment Advice
The S&P 500 Index Returns Based on the Year of the Snake 🐍 Happy New Year of the Snake! While it is not advisable to invest solely based on zodiac signs, investors celebrating the Year of the Snake are advised to remember: sometimes the market strikes when you least expect it! Image: Carson Investment Research
DXY U.S. Dollar Index vs. Nasdaq Composite / MSCI World Value Over the past two years, U.S. growth stocks—known for their sensitivity to currency fluctuations—have exhibited a strong correlation with the U.S. dollar. Image: Gavekal, Macrobond
S&P 500 Performance by January Return Bulls have reason to smile: Since 1950, when January has shown positive returns, the S&P 500 has ended the year positively 89% of the time, with an average annual gain of 19%. Image: Fundstrat Global Advisors, LLC
Returns – S&P 500 Price Index and Implied Trend Growth Rate For over two years, the S&P 500 has maintained a consistent trend channel, indicating a strong market despite concerns of potential overvaluation. Image: Deutsche Bank